Osbado Hernandez, False Statement to Bank, New Jersey 2024

NEWARK – A former Hudson County Sheriff’s officer was charged with making false statements to a bank in connection with a fraudulent short sale application, authorities announced.

Osbado Hernandez, 52, of Avenel, New Jersey, is accused of knowingly making false statements for the purpose of influencing the action of an FDIC-insured bank. Hernandez was released on $100,000 unsecured bond after a videoconference appearance before U.S. Magistrate Judge Jessica S. Allen in Newark federal court.

According to documents filed in the case and statements made in court, Hernandez allegedly made false statements from September 2015 to Dec. 30, 2015, to induce a bank to discharge a mortgage on a property in Keansburg, New Jersey. The false statements included that he did not have any money to apply toward his mortgage delinquency and that he intended to vacate the property following the short sale.

Hernandez also signed a sworn affidavit stating that he would not stay in the property for more than 90 days following the short sale, even though he intended to, and did, continue living at the property. As a result of the fraudulent short sale, the bank discharged over $98,000 of debt against Hernandez.

The false statements charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.

Acting U.S. Attorney Rachael A. Honig credited special agents with the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, and special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charge.

The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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