Commit short-sale fraud; you wind up in jail

Father and son sentenced in fraudulent short sale scheme

 Real estate investing is one way to make money.  Sometimes, though, you wind up in jail.  Per the US Department of Justice:

A father and son from Bergen County, New Jersey, were sentenced today to 27 months in prison and eight months of home detention, respectively, for their roles in a scheme to use straw buyers and short sales on properties to defraud mortgage lenders out of hundreds of thousands of dollars and to avoid paying taxes on the proceeds of the scheme, U.S. Attorney Craig Carpenito announced.

George Bussanich Sr., 60, of Park Ridge, New Jersey, was sentenced to 27 months in prison. He previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a superseding information charging him with one count of bank fraud conspiracy and one count of tax evasion. His son, George Bussanich Jr., 39, of Upper Saddle River, New Jersey, was sentenced to eight months of home detention. He previously pleaded guilty to tax evasion. Judge Cecchi imposed both sentences today in Newark federal court.

Apparently, these two were not content with the normal practice of buying low and selling high.  Instead, they rigged the low side of the transaction and the subsequent sales.

Read the full report here. 

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