The Real Estate Bloggers

Guilty Plea In 45 Million Dollar New Jersey Real Estate Ponzi Scheme

Posted: 15 Sep 2010 06:11 AM PDT

Moneyhousescale Antoinette Hodgson of Montclair, New Jersey has plead guilty in defrauding over 20 investors in a real estate Ponzi Scheme. Hodgson will face between 4 to 5 years in jail, a 1 million dollar fine, and lose the 5 million dollars in equity in the homes she still owns.

These cases are becoming all too familiar as the scams that occurred over the bubble are coming to light, and coming to court. Everyone felt there was a never ending gold mine in real estate and when the sentiment runs that way, the thieves come out of the woodwork.

If the judges give strong and long sentences to these offenders it may deter future crimes. However, if the penalties are weak, we will see more of the same.

Prosecutors accused Hodgson of soliciting $45 million from more than 20 New York and New Jersey investors between 2006 and December 2009, promising to use the money to buy or renovate residential real estate properties for eventual resale.

They said she instead spent only $6 million on real estate, and used most of the rest to repay earlier investors.

Hodgson also spent hundreds of thousands of dollars at Las Vegas and Atlantic City casinos; invested more than $700,000 in the Dunkin’ Donuts franchise, and gave tens of thousands of dollars to friends and family, prosecutors said.

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Guilty Plea In 45 Million Dollar New Jersey Real Estate Ponzi Scheme