Jason Herceg, 37, of Fairlawn, Ohio, has been sentenced to more than three years in prison and ordered to pay over $14 million in restitution for his involvement in a mortgage fraud scheme and an elder fraud conspiracy, announced Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Herceg pleaded guilty to three charges, including participation in the fraudulent schemes and failure to report income derived from the elder investor defraudment. His business partner, Andrew Norman, and co-conspirator Jack Coppenger were also involved.
In a sophisticated mortgage fraud scheme, Herceg, Norman, and Coppenger obtained “straw buyers” through false loan documents to purchase properties in Florida. They falsely inflated the straw buyers’ income and assets to secure loans for property they already owned, resulting in a loss of approximately $13.1 million to banks.
The trio also defrauded two elderly individuals by selling them an overvalued Florida property for $7 million. Norman, Herceg, and their partnership, 104 Investments, bought the property moments before the sale and then resold it at the inflated price, making approximately $2.5 million in profit from the transaction.
Norman failed to report this income on his tax return and was sentenced to more than three years in prison earlier this month. Coppenger has pleaded guilty and awaits sentencing. The investigation was conducted by agents of the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation’s Akron office, with the case being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Henry F. DeBaggis.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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