A Bronx, N.Y., woman was sentenced Wednesday to more than 15 years in prison for arranging an Atlantic City-based mortgage-fraud scheme in which seven properties were bought and sold 17 times in 2006.
Jong Shin, 52, was convicted in October 2011 of conspiracy to commit wire fraud, conspiracy to commit money laundering and two counts of making a false statement to a bank on a loan application, U.S. Attorney Paul J. Fishman said in a release.
Shin made $1.2 million defrauding mortgage-lending institutions by buying the residential properties in Atlantic City and reselling them to straw purchasers.
“Shin prepared fraudulent contracts to sell the properties to the straw purchasers and then included significantly inflated incomes, as high as $29,000 per month, on the loan applications,” the release said.
Shin’s straw buyers obtained more than $1 million in mortgage loans. They made two or three payments on the loans before defaulting, according to Press archives. The banks were the victims in the case, officials have said.
“Shin reaped $1.2 million in proceeds, which she laundered through several monetary transactions into her bank accounts,” the release said.
Michael Oxley, a Somers Point real estate appraiser, received large cash payouts from Shin to falsely inflate the appraisals of the properties. According to Press archives, he pleaded guilty to conspiracy to commit wire fraud.
Anna Shea, a title clerk from Millville who worked at Equity Title Agency, formerly located in Northfield, was recruited and paid off by Shin. According to Press archives, Shea pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering.
In order to get lending institutions to accept the applications and appraisals, Shin conspired with a mortgage broker to falsify the numbers.
After 17 transactions in 2006, the New York-based straw buyers owned all seven properties. They could not pay the mortgages, which were much higher than actual market value. The properties went into foreclosure.
Four of the seven properties are located in the 100 block of South Bellevue Avenue. The other three are on South Wilson, Blaine and Magellan avenues.
According to the indictment, in June of 2006 Shin purchased one of the South Bellevue properties for $280,000. In July, she sold the property for $435,000, having it appraised at $438,000. In August of 2006, it was sold again for $549,000 and was appraised at $552,000. A property next door, also originally owned by Shin, underwent a similar inflation process.
Contact David Simpson: