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A father and son have been indicted on charges accusing them of a Jersey Shore real estate investment scheme that defrauded investors and lenders out of about $2.5 million.
George Bussanich, Sr., 65, of Park Ridge, and George Bussanich, Jr., 43, of Upper Saddle River, were indicted on Monday in the alleged scam, which occurred between 2018 and 2020, the state Office of the Attorney General said.
Bussanich, Sr.’s daughter, Melanie Whitney, pleaded guilty in the case to theft by deception on March 7.
Whitney received money from two investors who thought they were funding purchasing, flipping and resale of houses in Ocean County – two in Ship Bottom, one in Manahawkin and one in Surf City. Additional funds meant to purchase the properties were provided by mortgage lenders, officials said.
Whitney did not tell investors and lenders about her father and brother’s involvement in the operation, according to the indictment.
The father and son then diverted the funds to corporate entities and spent the money on personal expenses, authorities alleged. Bussanich Jr. is also accused of submitting loan applications with false information to obtain financing as part of the scam, according to the indictment.
“These defendants allegedly defrauded investors and mortgage lenders for personal gain,” New Jersey Attorney General Matthew J. Platkin said. “We will remain steadfast in holding them accountable to deter these defendants and others from engaging in investment scams in New Jersey.”
The two were indicted on charges of conspiracy, credit card fraud, three counts of money laundering and two counts of theft by deception. Bussanich Jr. was additionally indicted on a charge of falsifying records.
They will be arraigned in Superior Court on a future date that has not yet been determined. Whitney is awaiting sentencing in the case.
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Nicolas Fernandes may be reached at nfernandes@njadvancemedia.com.
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