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Osbado Hernandez, 54, of Avenel, conspired with others to lie about a bogus short sale of his house in Keansburg so that the unidentified bank would discharge what was left on his mortgage, U.S. Attorney Philip R. Sellinger said.
Hernandez bought the property for $239,900 in 2006, financing it through a mortgage loan from the victimized bank, a complaint on file in U.S. District Court in Trenton says.
He ended up behind on the payments, prompting the bank to demand the full $248,169 that was left on it in February 2015, the complaint says.
Two months later, it says, the bank began foreclosure proceedings.
Then in June 2015, Hernandez signed a contract for a short sale to a buyer from Fair Lawn for $90,000, according to the complaint.
Hernandez claimed he had no money to put toward his delinquency – when, in fact, he had $28,511.69 socked away in a savings account that he tried to hide, federal authorities said.
Hernandez also signed a notarized affidavit attesting that he’d be out of the property within 90 days, “even though he intended to remain there indefinitely,” it notes.
The bank received $83,048, after which it discharged $98,036.30 worth of his debt, according to the complaint.
The buyer never took possession of the house, and Hernandez continued to live there, it says.
Rather than risk the possible consequences at a trial, Hernandez took a deal from the government following an investigation.
The onetime Sheriff's Officer of the Year and PBA Local 334 state delegate pleaded guilty in federal court in Trenton on Monday, May 22, to making false statements in connection with the release of a loan, Sellinger said.
U.S. District Judge Michael A. Shipp scheduled sentencing for Oct. 4.
Sellinger credited special agents with his office and with IRS - Criminal Investigation with the probe leading to the plea secured by Assistant U.S. Attorney Elaine K. Lou, who’s the chief of his Opioid Abuse Prevention and Enforcement Unit.
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