A massive mortgage fraud scheme has been exposed in New Jersey, with a Nutley man sentenced to 24 months in prison for his role in the crime.
Kenneth Sweetman, 34, was sentenced by U.S. District Judge Susan D. Wigenton in Newark federal court on July 13, 2015, for his involvement in a scheme that netted over $5 million in illegitimate proceeds.
According to documents filed in the case, Sweetman, along with Carmine Fusco, 47, of East Hanover, New Jersey, and others, conspired to obtain mortgage loans through fraudulent means from March 2011 through July 2012.
The scheme involved the formation of shell limited liability companies with names similar to licensed title companies, as well as the opening of bank accounts in these shell companies’ names to conceal their identity and control the receipt and distribution of fraudulently obtained mortgage loan proceeds.
As part of the scheme, Sweetman and Fusco conducted real estate closings even though they were neither licensed attorneys nor title agents. They also submitted false and fraudulent loan applications, supporting documents, and closing documents to mortgage lenders, including documents that misrepresented the owner of properties and the intended disposition of loan proceeds.
Using these methods, Sweetman, Fusco, and others conducted 16 fraudulent real estate transactions, including 11 Elizabeth properties, and obtained more than $5 million in illegitimate proceeds. In addition to the prison term, Judge Wigenton ordered Sweetman to serve three years of supervised release and pay $2,233,131.55 in restitution.
The investigation was led by the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Richard M. Frankel, among others. The case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force.
Related Federal Cases
- Marc Henry Menard, Investment Fraud Scheme, Mineola NY, 2023 · Florida
- Sato Satka, Bank Fraud, New Jersey 2024 · Illinois
- Vincent J. Gamuzza, Health Care Fraud, New Jersey 2023 · Pennsylvania
- Lissette Delarosa, Mail Fraud Conspiracy, New Jersey 2010 · Florida
- Michael Esposito, Wire Fraud, New Jersey 2013 · Pennsylvania
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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