MONTVALE, N.J. – A mortgage broker on Thursday was accused of submitting false information to qualify for 13 real estate loans for 11 multi-family houses with the help of a loan coordinator at Paragon FCU, which bilked the troubled credit union out of an estimated $5 million.
The suspect, identified as Joseph Curcio, ran CNS Enterprises. The company’s sole purpose was, “supplying fictitious invoices to be added to the seller side of the settlement statements” showing a debt to the company – even though he was the buyer, according to Bergen County Prosecutor Joseph Molinelli.
Losses from its mortgage operations helped force Paragon, a $300 million credit union, into a merger earlier this month with Visions FCU, a $3 billion Endicott, N.Y, credit union.
“These fraudulent leases combined with inflated property appraisals and a fraudulent Paragon Federal Credit Union membership application were all used to aid Curcio in meeting the loan criteria and ultimately being approved for a real estate loan,” said Molinelli.
The properties all eventually defaulted, and Paragon investigators began a review.
Curcio was released without bail pending a hearing on charges of theft by deception, forgery and conspiracy.
Charges will be brought separately against Curcio’s alleged accomplices: Paragon loan officer Dawn Woolbert; Osvaldo Riveron and Falvio Cardoza, who work for AOR Consultants in Union City; and Peter Lamicella, the owner of Lighthouse Appraisers in Toms River.
