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New Jersey man to face wire fraud charges in federal court


Many New Jersey residents are wary of investing their money in anything other than a savings account or certificate of deposit, mostly because they are worried about losing those funds in a volatile market. A report about a New Jersey man who was arrested recently on allegations of taking his clients' money in a real state "scam" may only further that fear of investing.

According to the reports, the 50-year-old man will face several counts of wire fraud in a federal prosecution effort. This man reportedly set up an investment operation for clients, in which he held out the prospect of huge profit margins by buying and selling foreclosed properties in several real estate markets that were the hardest hit areas in the now well-documented bursting of the real estate bubble a few years ago. However, the criminal allegations instead suggest that the man used the funds that clients transferred to him to pay for his home, every day expenses and even for personal shopping and a trip to Las Vegas.

To make matters worse, the federal authorities claim that this illegal activity dates back at least 10 years. And, in case our New Jersey readers didn't already know how serious white collar crimes are in the first place, here is the potential sentence this man now faces: 20 years in prison and a fine of up to $250,000.

Like embezzlement or identity theft, wire fraud is a white collar crime that usually requires a great deal of evidence to prove each element of the criminal offense. And, as strange as it may sound, this may actually help an arrestee in their efforts to craft a criminal defense strategy. If the paper trail isn't complete, the correct approach could be to poke holes in the prosecution's case by showing the leaps in logic.

Source: nj.com, "Essex County man accused of bilking investors out of $4 million in real estate scam," Thomas Zambito, May 13, 2014

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