A New Jersey mortgage broker has been charged with submitting false information to qualify for 13 multifamily loans with the help of a loan coordinator at Paragon Federal Credit Union, Montvale, N.J.
Investigators say the pair bilked the troubled credit union out of an estimated $5 million.
The suspect, Joseph Curcio, ran CNS Enterprises, whose sole purpose, was for “supplying fictitious invoices to be added to the seller side of the settlement statements,” showing a debt to the company – even though he was the buyer, according to Bergen County Prosecutor Joseph Molinelli.
Losses from its mortgage operations helped force Paragon, a $300 million credit union, into a merger earlier this month with Visions Federal Credit Union, a $3 billion asset shop.
“These fraudulent leases combined with inflated property appraisals and a fraudulent Paragon Federal Credit Union membership application were all used to aid Curcio in meeting the loan criteria and ultimately being approved for a real estate loan,” said Molinelli said.
The properties all eventually defaulted, and Paragon investigators began a review.
Curcio was released without bail pending a hearing on charges of theft by deception, forgery and conspiracy.
Charges are pending against some of Cuccio's alleged accomplices: Paragon loan officer Dawn Woolbert; Osvaldo Riveron and Falvio Cardoza, who worked for AOR Consultants in Union City; and Peter Lamicella, the owner of Lighthouse Appraisers in Toms River.
