TRENTON
– Attorney General Jeffrey S. Chiesa
announced that a Newark man was indicted today
for allegedly stealing approximately $1.2
million from two mortgage lenders by using
a stolen identity and false information to
obtain two home loans, which he used to sell
his home in Newark and acquire a luxury home
in Georgia.
Davionne Anderson, 41, of Newark, and his
unregistered real estate investment company,
AAA Investment Group, were each charged
in a five-count state grand jury indictment
with two counts of second-degree theft by
deception, two counts of second-degree identity
theft and one count of third-degree money
laundering. The charges stem from an investigation
by the Division of Criminal Justice Financial
& Computer Crimes Bureau.
In April and May of 2007, Anderson and
AAA allegedly used a woman’s stolen
identity and false information to obtain
a total of $1,205,250 in loans, which Anderson
used to buy two homes in the woman’s
name: a home that he himself owned in Newark,
and a home in Georgia that was owned by
an innocent seller who was unaware of the
fraud. Anderson obtained a $260,000 loan
from Chase Mortgage Company for the Newark
home, and a $945,250 loan from Sun Trust,
Inc., for the Georgia home. After completing
the phony sale of his own home and acquiring
the Georgia home in the name of the unsuspecting
buyer, Anderson moved into the Georgia home
with his wife.
“Using a single stolen identity and
two fraudulent loan applications, this defendant
from Newark allegedly stole over a million
dollars from lenders and attempted to settle
into a luxury home in Georgia that we allege
he never intended to pay for,” said
Attorney General Chiesa. “We’re
aggressively targeting mortgage fraud, which
causes major losses for lenders and ultimately
raises the cost of borrowing for honest
homeowners.”
“The Division of Criminal Justice
regularly investigates and prosecutes complex
white collar crime cases, including mortgage
fraud and money laundering offenses,”
said Stephen J. Taylor, Director of the
Division of Criminal Justice. “We’re
working hard to rid the marketplace of con
artists in order to protect lenders, investors
and homeowners.”
The buyer of the two homes was unaware
that Anderson was purchasing them in her
name. Anderson had obtained her personal
information while attempting to get her
to invest in real estate through his company,
but she never agreed to any investments.
It is alleged that Anderson and AAA fraudulently
obtained the loans by submitting loan applications
and HUD settlement forms containing fabricated
information about the woman’s employment
and earnings. Her signature was forged on
the closing documents. Because no payments
were made on the two mortgages, the buyer’s
credit was ruined and both homes went into
foreclosure.
Supervising Deputy Attorney General Francine
Ehrenberg, Deputy Chief of the Division
of Criminal Justice Financial & Computer
Crimes Bureau, presented the case to the
state grand jury. The investigation was
conducted by Sgt. Robert Walker and Deputy
Attorney General Ehrenberg. Deputy Attorney
General Frank Brady is assigned to prosecute
the case.
Second-degree crimes carry a sentence of
five to 10 years in state prison and a $150,000
fine. Third-degree money laundering carries
a sentence of three to five years in prison,
a $15,000 fine, and a $75,000 anti-money
laundering profiteering penalty. The indictment
is merely an accusation and the defendants
are presumed innocent until proven guilty.
The indictment was handed up to Superior
Court Judge Mary C. Jacobson in Mercer County,
who assigned the case to Essex County. Anderson
is being sought on a warrant issued in connection
with the indictment.
Attorney General Chiesa and Director Stephen
J. Taylor noted that the Division of Criminal
Justice has established a toll-free tipline
1-866-TIPS-4CJ for the
public to report corruption, financial crime
and other illegal activities. The public
can also log on to the Division webpage
at www.njdcj.org
to report suspected wrongdoing. All information
received will remain confidential.