Crime & Safety

Union Ringleader Stole Nearly $1M In Elaborate Identity Theft, Mortgage Fraud Scheme: US Attorney

The Union man and others allegedly used stolen names to steal almost $1M from lenders in fake mortgage, car and credit loans: US attorney

UNION, NJ — A Union man was arrested for being the alleged ringleader of an elaborate identity theft and mortgage fraud scheme in which they stole nearly $1 million from various lenders, Attorney General Christopher S. Porrino announced.

The alleged ringleader Artis Hunter, 49, of Union Township was arrested along with Melissa Phillip, 41, of West Orange and charged first-degree money laundering, first-degree conspiracy, second-degree identity theft and second-degree theft by deception.

Laquan Jones, 42, of Newark is also being sought as a fugitive in connection with the same charges.

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Bail has been set at $500,000 for Hunter, and $250,000 for Phillip.

Investigators executed search warrants at Hunter’s home in Union and a second home in Hillside seizing computers, phones, additional electronic equipment, documents and other potential evidence, according to Porrino.

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Hunter, Phillips and additional unidentified co-conspirators allegedly used stolen identities to steal more than $930,000 from lenders through at least eight fraudulent loan transactions, including four mortgage loans, three home equity lines of credit (HELOCs), and one car loan, according to the release.

Additionally, on the loan applications they used fake documents, including closing documents, wire transfer documents and title insurance documents, all of which were purportedly witnessed, prepared or reviewed by parties and professionals who, in fact, either did not exist or had no knowledge of the transactions, according to Porrino.

Once the loan was approved, the money– in the case of the mortgage loans, amounts ranging from $196,000 to $230,000 – to a bank account opened in a fake or stolen name of a title company or law firm.

Hunter, Phillips and others would then withdraw several thousand dollars from various ATMs or bank offices in a single day until the account was empty. The scheme dates back to at least 2010, according to Porrino.

They went so far as to create virtual offices for certain individuals and businesses purportedly involved in the loan transactions by setting up dozens of phone numbers, email addresses, fax numbers, websites and mail drop addresses. They allegedly took these steps to maintain the appearance that lawyers, employers, borrowers, sellers, settlement agents, title insurance companies, homeowner’s insurance companies, notaries and other persons were actively involved in legitimate lending transactions, according to the release.

“We allege that these defendants were prolific in their criminal scheme, stealing nearly one million dollars from lenders by using stolen or fictitious identities to stage loan closings that were almost entirely illusory,” said Porrino. “With these arrests, we’ve put an end to their costly tricks.”

The fraudulent mortgage loan applications related to residential properties in Franklin Township, Edison, Woodbridge and Franklin Park. The HELOCs related to two properties in Elizabeth and one in Plainfield. The car loan was for a 2012 BMW 3 Series.

First-degree money laundering carries a sentence of 10 to 20 years in state prison, including a mandatory period of parole ineligibility equal to one-third to one-half of the sentence imposed, and a fine of up to $500,000. The first-degree conspiracy charge carries a sentence of 10 to 20 years in state prison and a fine of up to $250,000. Second-degree crimes carry a sentence of five to 10 years in state prison and a fine of up to $150,000.

(Image via Shutterstock)



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