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Former Hudson County Sheriff Officer Charged with Short Sale Real Estate Fraud

By rlsmetro on
Hudson County

 A former Hudson County Sheriff’s officer was charged for making false statements to a bank in connection with an application to discharge a mortgage through a fraudulent short sale, Acting U.S. Attorney Rachael A. Honig announced.

Officials said Mr. Osbado Hernandez, 52, of Avenel, New Jersey, is charged by complaint with one count of knowingly making false statements for the purpose of influencing the action of an FDIC-insured bank.

Federal officials said Hernandez appeared this afternoon via videoconference before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $100,000 unsecured bond.

According to documents filed in this case and statements made in court:

From September 2015 to Dec. 30, 2015, in order to induce a bank to discharge a mortgage on a property in Keansburg Hernandez made false statements in connection with a fraudulent short sale of the property, including that he did not have any money to apply toward his mortgage delinquency and that he intended to vacate the property following the short sale.

Hernandez fraudulently withheld information regarding the availability of funds in a savings account he failed to disclose to the bank.

According to federal officials, Hernandez also signed a sworn affidavit that he would not stay in the property for more than 90 days following the short sale, even though he intended to, and did, continue living at the property.

As a result of the fraudulent short sale, the bank discharged over $98,000 of debt against Hernandez.

The false statements charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million.