NEWARK, N.J. (AP) - A construction company owner admitted to concealing a mortgage fraud scheme carried out by his wife, who obtained seven loans totaling more than $3.7 million on two properties in northern New Jersey.
Zbigniew Cichy, 45, of Belvidere, pleaded guilty Friday, about a week after his 48-year-old wife, Ania Nowak, pleaded guilty to conspiracy to commit wire fraud, federal prosecutors said.
Cichy admitted knowing about the scheme involving his wife, a former real estate title agent, but didn’t report it. He also took steps to conceal the scheme by making payments on some of the fraudulent loans out of his personal and business accounts and lying on loan documents.
For each of the seven loans, Nowak admitted that she lied on loan documents and failed to pay off prior mortgages at closing. She also failed to record the mortgages and any deeds.
Most of the loans went into default for nonpayment.
Cichy faces three years in prison and his wife faces up to 20 years when they are sentenced May 5.
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