Two Plead Guilty in Massive NJ Real Estate Scheme

Anthony Natale, a lawyer from Neshanic Station, N.J., and Kenneth Lagonia formerly of East Brunswick who now resides in North Carolina, pleaded guilty to their roles in criminal conspiracy involving NJ Affordable Homes, Corp., a purported real estate investment company, which defrauded hundreds of investors and mortgage lenders of more than $20 million. According to Ralph J. Marra, Jr., acting U.S. attorney for the District of New Jersey, Natale was retained to conduct real estate closings for properties bought by NJAH as part of an investment program where NJAH promised to purchase and renovate properties to be resold at substantial, guaranteed profits. Natale admitted that he directed his paralegal to prepare fraudulent HUD-1 Universal Settlement Statements that falsely showed that Natale's clients, who were "nominee buyers," had paid money to purchase the properties and thus had equity in the properties, when Natale knew they had not. He also acknowledged that these false HUD-1s were often submitted to mortgage lenders for mortgage loans and then to HUD and the FHA, which, in turn, federally insured the loans. Lagonia, president of Quality Homes Are Us, a company affiliated with NJAH, admitted that he created false solicitation letters on behalf of NJAH, representing that NJAH was profitable, in order to lure investors. Lagonia also acknowledged that he signed false employment verifications for nominee purchasers, which were submitted to lenders, and notarized deeds and other mortgage documents, falsely representing that the nominee purchasers were present at closings when they were not. Sentencing for both defendants, who are free on $100,000 unsecured bonds, is scheduled for May 18. Natale and Lagonia are the ninth and 10th defendants associated with this ongoing NJAH investigation to plead guilty.