Man Claiming To Have Westwood Real Estate Venture Arrested

A man who said he was working on a real estate venture in Westwood was arrested Friday and charged with issuing a bad check.

A Bergen County physician told the Bergen County Prosecutor's Office, White Collar Crime Unit, that Michael K. Petersen wrote him a check for $50,000 that was intended to be partial payback for a $500,000 loan he issued. The victim said when he tried to deposit the check, which was issued in January, it was returned because there wasn't enough money in the account.

According to the Bergen County Prosecutor's Office, the physician and his wife met Petersen in February 2009 and discussed building a new home. Petersen agreed to take on the project and they drew up a contract. In the next few months, Petersen asked the couple to invest in a real estate venture he was involved with in Westwood. The pair agreed to loan Peterson $500,000 because they "felt comfortable and secure" with him, the Prosecutor's Office said in a statement.

The loan was secured with two Promissory Notes, which Petersen signed, according to officials. The interest and principal were supposed to be paid in 12 weeks, which was May 7, 2009. The couple contacted Petersen about their money and he allegedly put off paying and gave false excuses. The three met Oct. 9, 2009 and Petersen promised he would have their money by the end of the month, according to authorities.

The couple did not receive payment until Jan. 14, 2010 when they received a $50,000 check from Petersen's business checking account for Timber Ridge Developers, LLC, the Prosecutor's Office said. When they tried to cash the check it was returned because there were insufficient funds.

The victims said they contacted Petersen and informed him of the situation, but he made no attempt to pay them the money owed and the couple said they still have not been paid.

Petersen was charged with one count of issuing a bad check, a third degree crime. He was served with a criminal complaint and taken to Bergen County Jail in lieu of $100,000 with no 10 percent option.