A New Jersey man who owned and operated two foreclosure rescue companies has pleaded guilty to his role in a mortgage fraud scheme in order to commit wire fraud and money laundering.
Ronald Harris Jr. allegedly caused mortgage lenders to fund dozens of fraudulent loans that totaled more than $10 million. Out of this amount, Harris received approximately $1.1 million.
According to documents made in Harris’s plea agreement, the defendant managed Harris Capital and Skyline Capital Group to initiate this conspiracy. The companies were created to help homeowners avoid foreclosure, keep their homes and repair their damaged credit by allowing title to their homes to be put in the names of third-party purchasers, or straw buyers.
Harris Capital employee Sterling Bruce was working with Harris in this scheme that lasted for about six months to one year. Homeowners were allegedly promised lower mortgages, improved credit ratings and titles to their homes would eventually be returned to them.
Once homeowners started to participate in this scheme, the defendants hired individuals with good credit scores who acted as straw buyers of the distressed properties. Straw buyers who were recruited were told that they were helping someone save their home and that they would make money when they sold the property back to the current owner after approximately one year.
The defendants allegedly received help from Pia Perkinson, a mortgage loan officer, when they submitted loan applications that contained false personal and financial information about the straw buyers, such as misstating their employment, income and assets to increase the creditworthiness of these individuals. To support these invalid statements, Harris supposedly would submit documents like fake employment records and improper investment account statements with the loan applications.
Before these transactions were closed, the defendants filed fraudulent liens that cost thousands of dollars on the properties. These liens were allegedly paid off with the proceeds of the acquired loans. Harris admitted in court that he “regularly laundered these loan proceeds through various bank accounts” that he had rights to.
Harris faces a maximum penalty of 30 years in prison and a fine of up to $1 million for wire fraud, while the money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Sept. 13.
The other defendants in this case previously pleaded guilty to this conspiracy and await sentencing.
