NJ couple indicted for $1M investment scam |
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Thursday, May 12, 2008 —A husband and wife are facing charges for allegedly scamming several investors out of more than $1 million.
On May 12, a Monmouth County grand jury returned a 26-count indictment on Larry Kushner, 56, and his wife, Jacqueline Kushner, 43, both of Long Branch.
The Kushners are charged with five counts of second-degree theft by deception, two counts of third-degree theft by deception, one count of second-degree identity theft, one count of third-degree fraudulent use of a credit card, and one count of fourthdegree fraudulently obtaining a credit card, according to a press release from the Monmouth County Prosecutor's Office.
The indictment also charges the couple with third-degree failure to file a tax return and third-degree failure to pay taxes for tax years 2003 through 2006, authorities said.
If convicted, the Kushners face a maximum of up to 10 years behind bars for the second-degree charges and up to five years for the third-degree charges. They also face another 18 months in jail on the fourth-degree charge, according to authorities.
An investigation conducted by theMonmouth County Prosecutor's Office, in conjunction with the New Jersey Division of Taxation, revealed that between 2000 and 2005, Larry Kushner bilked seven investors out of $1.2 million.
Kushner told the investors that the money they invested in his company, Foreclosure 911, would be used to purchase foreclosed properties in New Jersey, Pennsylvania or Delaware. Instead, he used the money for personal expenses, including several trips for himand his family to Florida and Israel, authorities said.
His wife, Jacqueline, served as the president of Foreclosure 911, and much of the stolen funds were diverted directly to her, authorities said.
In addition to stealing investment funds, Kushner used the personal information of one investor to obtain four credit cards. The investigation revealed that between 2003 and 2005, the Kushners fraudulently charged over $155,000 to those credit cards, authorities said.
"As troubles persist in the mortgage market and as the number of foreclosures increases, the public needs to be keenly aware of unscrupulous actors who seek to turn a profit from them is fortune of others," Monmouth County Prosecutor Luis A. Valentin said in the release.
"We remain vigilant in our efforts to protect the public from such unsavory and predatory investment scams," Valentin said.
The Kushners surrendered to detectives from the Monmouth County Prosecutor's Office on May 13.
Bail was set for the Kushners at $750,000 each, and as a condition of the bail, the Kushners must surrender their passports. Both remain in the Monmouth County Correctional Institution, Freehold Township, in lieu of bail, authorities said.
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