Bergen County Father And Son Arrested In Short Sale Scheme

A Bergen County father and son were arrested Wednesday for scheming to defraud mortgage lenders out of hundreds of thousands of dollars through short sales, authorities announced.

George Bussanich Sr., 56 of Park Ridge, and George Bussanich Jr., 35 of Upper Saddle River, were each charged with one count of conspiracy to commit bank fraud and two counts of bank fraud, said U.S. Attorney Paul J. Fishman in a statement.

The pair allegedly conspired to defraud mortgage lenders through two sham short sales of properties in Emerson and Park Ridge from 2009 to 2012, Fishman said.

The elder Bussanich allegedly had his business partner and the owner of a Cliffside Park sleep clinic each purchase one of the properties from his son, Fishman said; Bussanich Sr. allegedly used a business he controlled to fund each short sale.

Bussanich Jr. allegedly used false information that misrepresented the circumstances of the short sales, the source of the funding, and the relationships the buyers and sellers had with each other, authorities announced.

About two years after the short sales occurred, Bussanich Sr. bought the properties back from the straw purchases using money that he owed his business partner, Fishman said.

Each count carries a maximum potential penalty of 30 years in prison and a $1 million fine.

The father and son were scheduled to appear Wednesday afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.