41° and Sunny
Bergen County Duo Indicted in Multi-Million Dollar Real Estate Fraud Scheme
New Jersey’s Attorney General reports an indictment of a father-son pair in an elaborate real estate investment scam, implicating family members and causing substantial financial losses.
Attorney General Matthew J. Platkin announced the indictment of George Bussanich, Sr., and his son on charges involving a deceptive investment scheme that swindled over $2.5 million from investors and lenders through a series of 'fix-and-flip' property deals in New Jersey's Ocean County.
In a significant crackdown on real estate investment fraud, a father and son from Bergen County, New Jersey, face multiple charges, including conspiracy, theft, and money laundering, after a state grand jury handed down an indictment. George Bussanich, Sr., 65, and his son, George Bussanich, Jr., 43, allegedly orchestrated a scam from August 2018 to March 2020 that misled investors into pouring funds into the purchase and renovation of residential properties for resale, ostensibly to profit from the booming Jersey Shore real estate market.
The investigation, led by the Attorney General’s Office of Securities Fraud and Financial Crimes Prosecutions in conjunction with the Division of Criminal Justice's specialized bureau, revealed the duo's elaborate scheme. They reportedly enticed victims to invest in the renovation of four homes in Ship Bottom, Manahawkin, and Surf City, with the promise of substantial returns upon resale.
Details emerged of a previous charge involving the Bussanich family and associates, including Melanie Whitney, who has since pleaded guilty to related offenses. The indictment accuses the Bussaniches of diverting funds for personal use, laundering the proceeds through various entities, and obscuring their involvement from the investors and mortgage lenders who provided the financing based on projected property value increases post-renovation.
In a statement, Attorney General Platkin emphasized the commitment to justice, highlighting the importance of deterring such fraudulent activities. "We will remain steadfast in holding them accountable to deter these defendants and others from engaging in investment scams in New Jersey."
The legal proceedings against the accused are set to continue in Bergen County, following the indictment's handover to the Superior Court. Both George Bussanich, Sr., and his son, face several second-degree charges related to the scam, including additional counts for credit card fraud and falsifying records for George Bussanich, Jr.
Deputy Attorney General Janet R. Bosi is managing the case, with an investigative team that diligently worked to uncover the fraudulent operations. While the charges are severe, the Bussaniches maintain the presumption of innocence until proven guilty, a cornerstone of the American legal system.
