Like Father, Like Son; Duo Indicted For Mortgage Fraud
Two indicted on Jersey Shore for fix-and-flip scheme valued at $2.5 million.
A New Jersey grand jury indicted a father and son from Bergen County for mortgage fraud Monday, after they allegedly defrauded investors and mortgage lenders of more than $2.5 million through an investment scam involving Jersey Shore real estate.
George Bussanich Sr., 65, of Park Ridge, New Jersey, and George Bussanich Jr., 43, of Upper Saddle River, New Jersey, were indicted on charges of conspiracy, theft, and money laundering in connection with the scam, involving the purchase and renovation of residential homes for the purpose of profitable resale — so-called “fix and flip” properties. The alleged offenses occurred from August 2018 to March 2020.
According to a statement from the New Jersey attorney general’s office, the scam was led by another family member, Melanie Whitney. The daughter of Bussanich Sr. and sister of Bussanich Jr., Whitney pleaded guilty to theft by deception on March 7, 2023, and is awaiting sentencing.
As part of the scam, Whitney misled two investors into partnering with her to invest in residential properties that could be purchased, renovated, and sold for a profit. The mortgage lenders provided additional financing to purchase and renovate the homes based on the increase in property value anticipated from the renovation work.
Meanwhile, the true roles and involvement of Bussanich Sr. and Bussanich Jr. in the alleged scam were concealed from the victims. The indictment alleges that Bussanich Sr. and Bussanich Jr. largely diverted the victims’ money for personal use through entities they controlled. Both of those defendants allegedly also laundered the stolen funds through bank accounts and corporate entities they controlled to promote the scam, conceal their involvement, and disguise the nature of the stolen money. In addition, Bussanich Jr. is accused of submitting false loan applications to a lender to obtain financing for the real estate investment scam.
For their mortgage fraud, Bussanich Sr. and Bussanich Jr. are charged with conspiracy (second degree), two counts of theft by deception (second degree), three counts of money laundering (second degree), and one count of credit card fraud (fourth degree). Bussanich Jr. was also charged with falsifying records (fourth degree).