Barry Fauntleroy, 40, Mendham, New Jersey, Devon Bowie, 54 Malverne, New Jersey and Peter Port, Roslyn, New Jersey were sentenced recently in a mortgage flipping scam that defrauded HUD, Lenders, and Borrowers in a span of 12 months from June of 1999 to July of 2001 in Northern New Jersey and Essex County New York.
Fauntleroy was sentenced on 3/27/2006 to serve 21 months in Federal Prison and will be required to pay restitution in the amount of $524,000 for his role as a Mortgage Company executive carrying out this scheme. Fauntleroy was formerly of Mendham, but was located on his private yacht in the Caribbean.
Bowie was sentenced on 3/24/2006 to serve 12 months in Federal Prison and will be required to pay restitution in the amount of $500,000 for his role as a Mortgage Company Owner carrying out this scheme.
Port was sentenced on 3/21/2006 to serve 5 months in Federal Prison and will be required to pay restitution of $510,000 for his role as the Title Attorney, Port Abstract, carrying out this scheme.
The scheme was a complex real estate-mortgage scam whereby more than 152 unqualified, unsuspecting, low-income, minority homebuyers were targeted and often left with uninhabitable homes, bad credit and thousands of dollars in debt. The borrowers’ mortgages were financed through fraudulently obtained loans from the U.S. Department of Housing and Urban Development (HUD), while Port, Bowie and Fauntleroy reaped hundreds of thousands of dollars, through fraudulent fees and excessive overcharges. Currently out on bail since their arrests by the Federal Bureau of Investigation (FBI) and U.S. Postal Inspection Service, the now-convicted felons must hand themselves over to authorities within 60 days of their sentencing in late March.