Former Loan Officer Admits Role In $6 Million Mortgage Fraud Scheme


NEWARK N.J. – May 29, 2015 – (RealEstateRama) — A Jackson, New Jersey, man today admitted his role in a large-scale mortgage fraud scheme that used phony documents and straw buyers to acquire over $6 million in loans, U.S. Attorney Paul J. Fishman announced.

Joseph DiValli, 46, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to a superseding information charging him with one count of conspiracy to commit wire fraud, one count of wire fraud and one count of tax evasion.

According to documents filed in this case and statements made in court:

From March 2011 through November 2012, DiValli and other conspirators agreed to fraudulently obtain mortgage loans for properties located in North Jersey. After recruiting “straw buyers” to purchase the properties, DiValli and others submitted false and fraudulent loan applications and supporting documents so the straw buyers could qualify for the loans. DiValli and others also used another conspirator, who worked at a bank, to create misleading certifications showing certain bank accounts held more money than they actually had. Divalli and other conspirators also submitted false appraisal reports, back-dated deeds and used unlicensed title agents to close transactions and disburse the mortgage proceeds…

Marta Rivera Metelko
Director, Public Affairs
Office of Inspector General
U.S. Department of Housing & Urban Development
(202) 402-4837

Previous articleNorton Announces Land Transfer Marking Major Step for St. Elizabeths DHS Campus
Next articleOCC Takes Action Against Bank of America to Protect Consumers and to Ensure Servicemembers Receive Credit Protections for Their Non-Home Loans