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Cabral Simpson, 43, and a group of co-conspirators left lenders and the U.S. Department of Housing and Urban Development holding the bag by creating bogus bank statements and fake employee verification records for unqualified property buyers, U.S. Attorney Craig Carpenito said.
They then transferred enough money into the buyers’ bank accounts to cover the property deposit, Carpenito said.
The scheme "induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in potential losses,” the U.S. attorney said.
Carpenito credited special agents with HUD’s Office of the Inspector General for the investigation that produced a grand jury indictment charging Simpson with conspiracy and wire fraud.
Handling the case for the government is Assistant U.S. Attorney Andrew Kogan of Carpenito’s Cybercrimes Unit in Newark.
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ALSO SEE: The former owner of an Elizabeth restaurant admitted ducking nearly $200,000 in federal income taxes from the business.
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