Hunterdon man accused of $1.5 million real estate fraud scheme
A Clinton Township man is facing a federal charge of defrauding a New Jersey-based title insurance company of approximately $1.5 million,
Ralph Divino, 62, of the Annandale section of the township, was indicted on two counts of wire fraud, according to U.S. Attorney Philip R. Sellinger.
Divino appeared Oct. 31 before U.S. Magistrate Judge James B. Clark III in Newark federal court, entered a plea of not guilty, and was released on unsecured bond.
From October through November 2018, Divino executed a scheme to defraud a New Jersey-based title insurance company through which he fraudulently obtained a residential property and funds exceeding $900,000, according to Sellinger.
Through Divino’s scheme, the title insurance company lost approximately $1.5 million, Sellinger said.
Divino told the title insurance company that he wanted to buy two residential properties in Warren Township and Annandale. according to the indictment.
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Divino then falsely represented that he had wired $1.5 million for the purchase of both properties when, in fact, he never sent any funds, Sellinger said.
Divino then told the title insurance company that he no longer wanted to buy the Warren property, Sellinger said.
Relying on Divino’s false assurances that he had wired $1.5 million to the title insurance company, the title insurance company issued Divino a check for $987,000 as a refund, which Divino cashed and used to purchase personal items, including luxury cars, according to the indictment.
Divino also closed on and assumed ownership of the Annandale property while never having provided any funds to title insurance company, Sellinger said.
In November 2018, after the closing on the Annandale property, the title insurance company discovered that Divino had never wired any money to purchase either property, the indictment charges.
When representatives from the title insurance company asked Divino about this, Divino gave them two checks from his purported business account totaling $1.5 million.
After the bank refused to honor Divino’s checks, citing insufficient funds, Divino got into an email exchange with an employee of the title insurance company in which he falsely assured the employee that the checks could be used to reimburse the title insurance company, or that Divino would otherwise provide the missing funds, according to the indictment.
In truth, at the time of those communications, the business account from which Divino had issued the checks had a negative balance and Divino never reimbursed the title insurance company for the fraudulently obtained funds, the indictment alleges.
Each wire fraud count carries a maximum potential penalty of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
Email: mdeak@mycentraljersey.com
Mike Deak is a reporter for mycentraljersey.com. To get unlimited access to his articles on Somerset and Hunterdon counties, please subscribe or activate your digital account today.
This article originally appeared on MyCentralJersey.com: Hunterdon NJ man accused of $1.5 million real estate fraud scheme
