Crime & Safety

2 Residents Indicted for Alleged Roles in Mortgage Fraud Scheme

Authorities: Peter Lamicella performed phony property appraisals

A Toms River man is among 12 people indicted by a Bergen County grand jury for allegedly engaging in a mortgage fraud scheme that resulted in $3 million worth of loans in default, authorities said.

Peter Lamicella, 41, of Warren Point Road, faces multiple charges as part of a 25-count indictment handed up in connection with an alleged scheme at Paragon Federal Credit Union in Montvale, according to a release from the Bergen County Prosecutor's Office. Resident Frances Wilson, 61, of Windsor Avenue, also was indicted for her alleged role in a conspiracy that authorities say continues to be investigated.

Authorities claim Lamicella, the owner of Lighthouse Appraisals LLC of Toms River, conspired with others to perform property appraisals with pre-determined values that Paragon then used to approve loans for customers who otherwise would have fallen short of income and/or property value requirements. Independent appraisers who were later hired to do retroactive property reports found that Lamicella's appraisals were "grossly inflated," authorities say.

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The Prosecutor's Office alleges that Dawn Woolbert of Waldwick falsified membership criteria in Paragon to enable potential borrowers to be eligible for mortgages, which were brought to her by Flavio Cardoza and Osvaldo Riveron, the mortgage broker and owner, respectively, at AOR Consultants and Apex Consultants out of North Bergen.

When a potential borrower did not meet Paragon's loan requirements, Woolbert would return their application to Riveron and Cardoza and inform them of what the borrower's income and property appraisals had to be in order to qualify for a loan, authorities said.

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Riveron and Cardoza then would hire Lamicella to perform the appraisals that the prosecutor's office said were inflated. The two men would resubmit the loan application with false data and would personally pay Woolbert per loan to get each deal approved, authorities said. Those involved allegedly submitted applications with phony W-2s, fabricated tax returns and errant financial data, authorities said.

Bank investigators initiated the Prosecutor's Office probe after a routine audit turned up an "unusual amount" of delinquent residential mortgage loans.

Lamicella was charged with: one count of theft by deception; five counts of forgery; one count of conspiracy to commit theft by deception; one count of financial facilitation of criminal activity; and one count of misconduct by a corporate official.

Wilson was charged with one count each of theft by deception, forgery and conspiracy to commit theft by deception.

Also indicted:

  • Jermaine Butler, 31, of Jersey City;
  • Flavio Cardoza, 38, of North Bergen; 
  • Taneisha Frye, 33 of Jersey City;
  • Shoan Griffin, 26, of Jersey City;
  • Robert Lundholm, 42, of Cape May;
  • Lee O’Keefe, 41, of Glen Ridge;
  • Vereesa Polk, 42, of Atlanta, Ga.;
  • Osvaldo Riveron, 50, of North Bergen;
  • Peter Smith, 38, of Jersey City;
  • Dawn Woolbert, 44 of Waldwick.


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