Two Men Charged In Real Estate Investment Fraud Scheme - $5M In Losses

By
Education & Training with The Real Estate Mart of Tennessee, Inc. TN LIC# 290452

Two Men Charged in Real Estate Investment Fraud Scheme

U.S. Attorney’s Office March 07, 2013
  • District of New Jersey (973) 645-2888
 

NEWARK—Two men were arrested this morning and charged with engaging in a real estate investment fraud conspiracy that defrauded more than 15 victims of approximately $5 million from 2009 to the present, U.S. Attorney Paul J. Fishman announced.

Paul Mancuso, 46, of Glen Rock, New Jersey, and Pasquale Stiso, a/k/a “Pat Stiso,” 52, of West Harrison, New York, are charged by complaint with one count of conspiracy to commit wire fraud. They made their initial court appearances this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal Court. Stiso was released on bail. Mancuso was ordered detained, pending a bail hearing tomorrow.

According to the complaint:

From 2009 through the present, Mancuso held himself out as a real estate investor, broker, and/or developer, as well as a “hard money” lender and broker of other various purported investments. Mancuso obtained from his victims substantial investments for various projects that, in fact, either did not exist at all or in which Mancuso had no actual involvement.

Stiso, a disbarred attorney, held himself out as an individual who was working with Mancuso on various purported projects.

Some of the purported projects touted by Mancuso, Stiso, and/or their co-conspirators included investments in a phony ticket scam, the development of a pizzeria at a resort in the Bahamas, the development of a casino in Atlantic City, the development of a commercial shopping center, and the “flipping” of a piece of real estate in Matawan.

Most, if not all, of Mancuso’s victims lost all or substantially all of the money they invested with him and his co-conspirators.

Many of Mancuso’s victims have lost all or substantially all of their life savings in his various schemes to defraud.

The complaint also alleges that Mancuso and Stiso were heavily involved in illegal gambling pursuits and that they both owe substantial sums of money to one of their bookmakers or “bookies” (referred to in the complaint as “the Bookie”).

Indeed, Mancuso paid the Bookie in excess of $600,000 from gambling losses in or around 2012, and defendant Mancuso still owes the Bookie approximately $500,000 from gambling losses.

The charge of wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest.

U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge David Velazquez; Special Agents of the Internal Revenue Service-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; as well as Criminal Investigators of the U.S. Attorney’s Office for the investigation leading to today’s arrests.

The government is represented by Assistant U.S. Attorney Lisa M. Colone of the U.S. Attorney’s Office Criminal Division in Newark.

The charge and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

source: FBI
Posted by

 

 


David Saks


 

Earth

Content Protected © 2014  
Subscribe To David's Blog    
Add David as an Associate

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the chair to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
Tennessee Shelby County Memphis
Groups:
Realtors®
Crime
Tags:
real estate fraud

Comments 2 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the car to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
141,435
Dee Toohey
Broker, ABR, AHWD, FMS, ePro
Innovative Realty Solutions Group

Thanks for sharing.  I'm glad they got caught.  These unfortuate scams hurt the public and agents. 

March 08, 2013 08:00 AM
Rainmaker
1,179,430
David Saks
Memphis, Tennessee
The Real Estate Mart of Tennessee, Inc.

Thank you for reviewing the press release, Dee. Very serious charges.

March 08, 2013 03:18 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the printer to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
1,179,430

David Saks

Memphis, Tennessee
ActiveRain Enriches Lives ! Question or Note ? Send It Here !
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clip to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Join ActiveRain


Legal Disclaimer:

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies

The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

Photos © & Licensed by Nova Development

Content Protected © 2014   


Subscribe To David's Blog    
Add David as an Associate

Before you even think about committing a real estate crime click the red button.
Real Estate Crimes

Free Meta Tag Tool for SEO

Meta Tag Analyzer