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AHH 24-Hr. News

Complaint Filed Against Moving Company That Allegedly Low-Balled Consumers and Threatened to Withhold Possessions
Thursday, 24 July 2014
NEWARK, NJ – Acting Attorney General John J. Hoffman and the New Jersey Division of Consumer Affairs today announced the filing of a complaint... Read More...
Keeping Kids Healthy this Summer
Thursday, 24 July 2014
The American Heart Association and American Stroke Association want kids to stay heart-healthy this summer. Robbinsville, NJ, July 24, 2014—School... Read More...
IMAGE Long Branch Native a ‘Rising Star’ on ABC Singing Competition Show
Thursday, 24 July 2014
Long Branch, N.J.  –  24-year-old Audrey Kate Geiger is preparing for her second performance on “Rising Star,” ABC’s newest hit... Read More...
Globe Awards New Turnout Gear to Highlands Fire Department as Part of 2014 Giveaway Program
Wednesday, 23 July 2014
HIGHLANDS, NJ - Globe, in partnership with DuPont Protection Technologies (DuPont) and the National Volunteer Fire Council (NVFC) has made the... Read More...
Overnight Closure of West Front Street Bridge
Wednesday, 23 July 2014
Work to advance replacement of span continues MIDDLETOWN, NJ – Beginning tonight, from 10 p.m. until 4 a.m., the bridge on West Front Street over... Read More...

Columns

IMAGE Skewed View - July 24, 2014
by Tom Brennan
Thursday, 24 July 2014
I created a page called "Fact Jack".  If you want, like it on Facebook http://bit.ly/FactJackFb or follow on... Read More...
IMAGE Christie Should Help Fellow Republicans
by Jack Archibald
Thursday, 24 July 2014
Governor Chris Christie  revealed quite a bit about his political ambition and philosophy this past week.  In case you haven’t been... Read More...
IMAGE Review - Tammy
by David Prown
Sunday, 20 July 2014
It's amazing to me how lame the movie selection was this week. I'm not even sure if there was anything new out...amazing. Have you noticed how I'm... Read More...
IMAGE The Importance of the Small Things, such as Commas
by George Hancock-Stefan
Sunday, 20 July 2014
I came back from a two week trip through Romania and Turkey.  It was a great trip visiting old and new churches and monasteries, and meeting in... Read More...
IMAGE Traumatic Brain Injury Was Devastating
by Daniel J. Vance
Saturday, 19 July 2014
Four days after getting his driver's license at age 16 in 1975, Todd Bode was coaxed into joining his big brother on a road trip. The hook was that... Read More...

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NEWARK, NJ —A Middlesex County, New Jersey man today admitted his part in a phony foreclosure rescue scheme that was part of a $4.4 million mortgage fraud, U.S. Attorney Paul J. Fishman announced.

Frederick “Freddie” Grippo, 32, of Old Bridge, New Jersey, formerly a loan officer at Worldwide Financial Resources and an officer of Vanick Holdings, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud.

According to documents filed in this case and statements made in court:

Between January 2008 and February 2010, a co-conspirator of Grippo was the president of Morgan Financial Equity Shares and Vanick Holdings, both based in Holmdel, New Jersey. Morgan Financial was held out to the public as a company that could help homeowners in financial distress who faced foreclosure on their homes through something called the “Equity Share Program.” As described by Morgan Financial and its president, the Equity Share Program involved creating a limited liability company in the name of the homeowner’s house in which the homeowner would supposedly own a 90 percent interest, with the rest to be owned by one or two private investors.

In reality, the so-called investors invested nothing and were instead straw buyers recruited by Grippo or his co-conspirator because they had good credit. Grippo and his associates then made out mortgage loan applications in the names of the phony investors for the purchase of the distressed properties. A homeowner in distress would come to a closing at the Morgan Financial office in Holmdel at which he or she would be given a stack of documents to sign that the homeowner thought would prevent foreclosure, but which actually transferred title to the investor. The new mortgage loan applications filled out in the name of the investor by Grippo or his associates contained materially false information about the loan applicant’s monthly income, his assets, and whether the residence to be “bought” would be his primary residence.

Once the new loan application was filled out, it would be submitted to Worldwide Financial Resources for processing, and Grippo, a loan officer at Worldwide, would see to it that the loan was approved. Once the loan was approved and the loan money was wired to the settlement agent for a given transaction, Grippo’s co-conspirator would direct the settlement agent to forward a portion of those loan proceeds to bank accounts that the co-conspirator controlled.

The scheme succeeded in obtaining $4.4 million in mortgage loans. Properties whose original owners fell victim to the Equity Share Program are located throughout the metropolitan area, including in Rutherford, New Jersey; Monroe, New Jersey; and Brooklyn, New York.

The conspiracy charge to which Grippo pleaded guilty carries a maximum potential penalty of 30 years in prison and a maximum fine of $1,000,000. Sentencing is scheduled for March 6. 2013.

U.S. Attorney Fishman credited special agents from the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Michael B. Ward in Newark; and special agents from IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Bohdan Vitvitsky of the U.S. Attorney’s Office Economic Crimes Unit in Newark.