By: Richard L. Smith
A former mayor and current town councilman in Willingboro has been sentenced to federal prison for his role in a mortgage fraud scheme involving a fraudulent short sale of a Burlington County property, according to information released by U.S. Attorney Robert Frazer.
Nathaniel Anderson, 59, of Willingboro, was sentenced on June 1 by U.S. District Judge Robert Kirsch to 12 months and one day in federal prison, followed by three years of supervised release.
His business associate, Chrisone Anderson, 58, was sentenced to eight months of home confinement and three years of supervised release.
The pair were also ordered to pay $221,986.71 in restitution to the victims.
A federal jury previously convicted both defendants of conspiracy to commit wire fraud affecting a financial institution, bank fraud, and two counts of making false statements on a mortgage application.
According to evidence presented at trial and court documents, Nathaniel Anderson and Chrisone Anderson orchestrated a fraudulent short sale of a Willingboro property between March 2015 and June 2017.
Prosecutors said the defendants submitted mortgage documents containing false information to facilitate the transaction.
Among the misrepresentations were claims that the sale was an arm’s-length transaction, that the two had no prior business relationship, that Nathaniel Anderson would no longer live at the property after the sale, and that Chrisone Anderson intended to occupy the home as her primary residence.
Federal authorities said the scheme was designed to induce a mortgage lender to issue a new loan while allowing Nathaniel Anderson to have his existing mortgage obligation discharged.
As a result of the fraudulent transaction, a government-sponsored enterprise absorbed losses exceeding $200,000 after discharging the mortgage debt, while a lending institution issued a new mortgage based on the false representations, prosecutors said.
The case was investigated by federal authorities and prosecuted by the U.S. Attorney’s Office for the District of New Jersey.