Antonio Pimenta, Bank Fraud, New Jersey 2015

State: New Jersey
Category: Fraud &#038; Financial Crimes
Source: <a href="https://www.justice.gov/usao-nj/pr/somerset-county-new-jersey-builder-admits-bank-fraud-associated-bogus-sale-irvington-new" style="color:#cc0000;" target="_blank" rel="nofollow noopener">DOJ Press Release ÃƒÂ¢Ã¢â‚¬Â Ã¢â‚¬â€

A notorious builder has been caught in a massive bank fraud scheme in Somerset County, New Jersey.

Antonio Pimenta, 47, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count Two of an indictment charging him with bank fraud.

Pimenta owned and managed Kelmar Construction Co. (“Kelmar”). Kelmar built multiple properties in Irvington, New Jersey. These properties were sold to straw buyers utilizing fraudulent mortgage loans brokered by loan officer, Klary Arcentales, 47, of Lyndhurst, New Jersey, and closed by settlement agent Linda Cohen, 57, of Orange, New Jersey, who used fraudulent settlement statements (HUD-1s) to hide the true sources and destinations of the mortgage funds.

The scheme involved a property located at 97 22nd Street in Irvington, New Jersey, which was built by Kelmar. The mortgage loan application contained false and fraudulent information concerning the straw buyer’s income, employment and rental history. The application also falsely represented that the straw buyer intended to reside in the property as his primary residence.

The charge to which Pimenta pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 16, 2016.

Arcentales and Cohen have both pleaded guilty to related charges and await sentencing.

The investigation was led by the FBI, with assistance from the IRS-Criminal Investigation, the Federal Housing Finance Agency, Office of the Inspector General, and the Social Security Administration, Office of the Inspector General.

Pimenta admitted that despite the fact that he never received a down payment, he knowingly signed a settlement statement that falsely indicated that the payment was made. Afterwards, Pimenta and Kelmar received approximately $381,000 from the fraudulent transaction. No payments were ever made to JP Morgan Chase for this mortgage loan.

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