A New Jersey man pled guilty to charges that he conspired to defraud financially distressed homeowners, investors, and financial institutions of fees and income from mortgage and real estate transactions.
Hasan Hussain, 57, of Princeton, N.J., pled guilty to charges that he conspired to defraud them of rental income, mortgage payment funds, property ownership and proceeds from the sale of their properties. Also, he pled guilty to aggravated identity theft in connection with the fraud. Hussain had already been convicted in federal court in Massachusetts and incarcerated for masterminding a real estate fraud.
At sentencing on Jan. 8, 2018, Hussain faces up to 32 years in federal prison, five years of supervised release, and a fine of $1,250,000. A co-defendant in this matter, Ricardo Abreu, who pled guilty earlier this year, is scheduled to be sentenced on Oct. 30, 2018.
Hussain’s guilty plea was made before U.S. District Court Judge John J. McConnell Jr., and the case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Richard B. Myrus, and William J. Ferland. Citing Department of Justice policy governing ongoing cases, Jim Martin, media relations for the department, declined The Mortgage Leader’s request for an interview.
Hussain admitted he used several business entities to trick distressed property owners, who were seeking loan modifications, into paying him fees, moving out of their homes, and then he sold their homes in short-sale transactions. As part of the plea, Hussain further admitted that he convinced lenders to agree to artificially low sale prices for the distressed property owners’ homes by having other individuals damage the properties prior to the short sales.
As a result, Hussain or individuals or businesses associated with him, acquired the properties at reduced prices, flipping them to investors at much higher prices. During his change of plea, Hussain admitted that these investors were defrauded of their funds, or good credit, or both when they agreed to purchase properties from Hussain.
Hussain further admitted that he assisted investors to acquire federally backed mortgages through fraudulent applications, which resulted in losses to the lenders or the Federal Housing Administration. Some of the tactics employed by Hussain as part of the scheme included misuse of identities and cutting and pasting signatures on property deeds and financial documents.
As part of his plea agreement, Hussain admitted that his scheme resulted in losses between $550,000 and $1.5 million dollars; that 10 or more victims were harmed; and that at least some of his victims were particularly vulnerable, as a result of their personal situation.
