North Jersey attorneys, Realtor charged in short-sale fraud scheme

Three New Jersey attorneys and a licensed Realtor have been indicted for their alleged involvement in a scheme to defraud financial institutions in a short sale fraud operation, U.S. Attorney Philip R. Sellinger stated.

Bruce Egert, 69, of Tenafly; Nelson Kong, 44, of Bethpage, New York; Seung Han Shin, also known as Aaron Shin, 42, of Old Tappan; and Francisco Sanchez, 48, of Ridgefield Park, were each charged by a federal grand jury with conspiracy to commit bank fraud and three counts of bank fraud. Egert and Kong also face three additional counts of making false statements to a financial institution.

Shin and Kong were arraigned Sept. 19 before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Egert and Sanchez appeared Sept. 23 before U.S. Magistrate Judge Stacey D. Adams. All four defendants were released on $100,000 unsecured bonds.

From 2013 to 2016, the defendants allegedly orchestrated fraudulent short sale transactions, according to court documents. In a short sale, a lender agrees to accept a sale price lower than the amount owed by a distressed homeowner. Prosecutors say the group misled banks about their intent to quickly resell — or "flip" — the properties for a profit, often on the same day as the short sale’s completion.

The indictment alleges that Egert and his co-conspirators, including convicted fraudster Mehdi Kassai, arranged to buy properties at steep discounts, using stolen identities and fraudulent documents. They then flipped the homes for substantial profits, violating deed restrictions on resale timing and price. Egert, Kassai’s attorney, also allegedly helped falsify HUD-1 Settlement Statements, concealing key details from the banks.

Kassai, the alleged ringleader, pleaded guilty in 2018 to bank fraud, wire fraud, and money laundering. He was sentenced to 16 months in prison and ordered to pay $7.94 million in restitution. Two Realtors who worked with Kassai, Steve Kang and Joshua Son, also pleaded guilty to fraud charges in 2019 and were sentenced to time served, with $2.38 million in restitution each.

The charges against Egert, Kong, Shin, and Sanchez carry a maximum potential sentence of 30 years in prison and fines of up to $1 million per count.

This article originally appeared on NorthJersey.com: North Jersey attorneys, Realtor charged in short-sale fraud scheme