Bergen County Residents Arrested In $3M Defrauding Scheme

By DANIEL HUBBARD (Patch Staff)

Five Bergen County residents, including a father and son who were charged last week with conspiring to defraud banks for years, were charged with defrauding 15 investors of $3 million, authorities said.

George Bussanich Sr., George Bussanich Jr., Wilma Bussanich, 54, the elder Bussanich’s wife, Heidi Francavilla, 56, Robert G. Schooley, 64, and Brendan M. Byrne, 44, were charged Sept. 2 with conspiracy, racketeering, money laundering, securities fraud, misconduct by a corporate official, and theft by deception, said Acting Attorney General John J. Hoffman.

Related: Bergen County Father And Son Arrested In Short Sale Scheme

Bussanich Sr. and his son agreed to pay $5.5 million, including $4 million in restitution, to settle a civil action involving a similar scheme that victimized 26 investors, Hoffman said.

An investigation by the state Division of Criminal Justice Gangs and Organized Crime Bureau revealed that, after settling immediately in the previous investment scheme, Bussanich Sr. and his son alleged solicited more than $3 million from 15 of the 26 investors to begin a new bogus investment, authorities said.

A consent order barred the father and son from further selling securities in New Jersey. They, and four others charged, allegedly conspired to violate the consent order and launder fraudulently obtained money using shell corporations, Hoffman said; they then allegedly diverted funds for personal use and paid the penalties associated with violating the consent order.

“The audacity of these defendants is astounding,” said Acting Attorney General Hoffman. “The game is up for these con artists, who potentially face very long prison sentences.”

Investors received false monthly statements that gave them the impression that the investments were legitimate and turning a profit, Hoffman said.

Four of the accused live in Park Ridge. Bussanich Jr. lives in Saddle River and Byrne lives in Paterson. Bussanich Sr. and his son were lodged in jail on $350,000 bail each and $300,000 bail for the other four people arrested.

Liens were placed on Bussanich Jr.s’ Upper Saddle River home and two homes in Park Ridge and Emerson owned by a limited liability company controlled by Bussanich Sr. valued at $1 million.

The accused could be sentenced to up to 60 years in prison just on the conspiracy, racketeering, and money laundering charges.

The Bussaniches and Francavilla were also charged with failure to file a tax return, filing a fraudulent tax return, and contempt. Schooley was also charged with failure to file a tax return.

(Pictured: George Bussanich Sr., George Bussanich Jr., Wilma Bussanich, Heidi Francavilla, Robert G. Schooley, Brendan M. Bryne/Courtesy of Attorney General’s Office)