A former Hudson County Sheriff’s officer has been charged with making false statements in connection to a fraudulent short sale back in 2015, Acting U.S. Attorney Rachel Honig announced.
Osbado Hernandez, 52, of Avenel, is charged by complaint with one count of knowingly making false statements for the purpose of influencing the action of an FDIC-insured bank, Honig said in a statement.
He appeared this afternoon via videoconference before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $100,000 unsecured bond.
From September 2015 to December 30th, 2015, in order to induce a bank to discharge a mortgage on a property in Keansburg, Hernandez made false statements in connection with a fraudulent short sale of the property, including that he did not have any money to apply toward his mortgage delinquency and that he intended to vacate the property following the short sale.
According to the criminal complaint, owed $252,357, including late fees, as of June 2015, about eight-and-a-half years after purchasing the property for $239,900.
Hernandez fraudulently withheld information regarding the availability of funds in a savings account he failed to disclose to the bank.
Hernandez also signed a sworn affidavit that he would not stay in the property for more than 90 days following the short sale, even though he intended to, and did, continue living at the property.
As a result of the fraudulent short sale, the bank discharged over $98,000 of debt against Hernandez.
“Through the broker, defendant Hernandez submitted approximately three months of checking account statements to the Victim Bank but fraudulently withheld information
regarding the availability of additional funds, including in a savings account, having a balance of approximately $28,511.69 on or about September 11, 2015,” the criminal complaint says.
The false statements charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million.
Acting U.S. Attorney Honig credited special agents with the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, and special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charge.