CAMDEN, N.J. (AP) — A New Jersey man has been sentenced to five years in prison for defrauding mortgage lenders out of $13 million.
John Leadbeater, of Kearny, pleaded guilty in March 2015 to federal charges that he recruited “straw buyers” from New Jersey, New York, Ohio, Arkansas and California to submit fraudulent mortgage applications for condominiums in Wildwood and Wildwood Crest.
The condos were built by financially distressed developers.
When the mortgages were approved, Leadbeater and his coconspirators took a portion of the proceeds.
Leadbeater admitted causing lenders more than $4 million in losses. A restitution hearing was scheduled for July 28.
A dozen others connected to the scheme have pleaded guilty.