Essex County real estate investor pleads guilty to $1 million mortgage fraud scheme

An Essex County real estate investor admitted Wednesday to his involvement in a $1 million mortgage fraud scheme, authorities said.

Cabral Simpson, of Orange, pleaded guilty to a count in an indictment charging him with conspiring to commit wire fraud.

From at least as early as October 2012 through March 2016, Simpson and his co-conspirators — who were not named — found properties for sale in North Jersey and helped buyers obtain mortgages by creating fake bank statements and phony employee verification records. They would then transfer money into the buyers' bank accounts for payment of the deposit for a property.

They submitted fraudulent mortgage loan applications, support documents and closing documents on behalf of buyers.

Investigators also said they received more than $1 million in loans from lenders, resulting in loan defaults and more than $1 million in potential losses for the lenders and the U.S. Department of Housing and Urban Development.

In one instance, on July 30, 2015, an individual purchased 811 South 18th St. in Newark, with one of Simpson's co-conspirators drafting a wire communication that was sent to falsely verify that they employed the buyer.

In another instance, on March 30, 2016, an individual purchased 705 South 18th St. in Newark, with Simpson providing the buyer with about $11,000 for the down payment. Simpson then drafted a fraudulent gift/donor letter as part of the buyer's mortgage application, resulting in a wire transfer by the mortgage provider of about $350,000 from an account in Texas to an account in New Jersey.

Simpson is scheduled to be sentenced on Jan. 10, 2024. His charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, twice the gross profits to Simpson or twice the gross loss suffered by the victims, whichever amount is greatest.

This article originally appeared on NorthJersey.com: NJ real estate investor pleads guilty in $1M mortgage fraud scheme