New Jersey Attorney General Matthew J. Platkin announced the indictment of a father and son who allegedly defrauded investors and mortgage lenders of more than $2.5 million in a scam involving Jersey Shore real estate.
George Bussanich Sr., 65, and his 43-year-old son George Bussanich Jr. are charged with conspiracy, theft, and money laundering in connection in a flipping scam involving the purchase and renovation of residential homes between August 2018 to March 2020. The duo allegedly conned investors into believing they were funding the purchase, renovation, and resale of four residential homes in Ocean County, New Jersey. The daughter of Bussanich Sr., Melanie Whitney, joined the scam by misleading two investors into partnering with her on this flipping endeavor, and mortgage lenders provided additional funding.
However, Bussanich Sr. and Bussanich Jr. are accused of diverting most of the victims’ money for personal use through entities they controlled. They also allegedly laundered the stolen funds through bank accounts and corporate entities they controlled to promote the scam, concealing their involvement, and disguising the nature of the stolen money. In addition, Bussanich Jr. is accused of submitting false loan applications to a lender to obtain financing for the real estate investment scam.
Whitney was previously last February on related charges and pleaded guilty in March to theft by deception; she is awaiting sentencing.
“These defendants allegedly defrauded investors and mortgage lenders for personal gain,” said Platkin. “We will remain steadfast in holding them accountable to deter these defendants and others from engaging in investment scams in New Jersey.”
The Bussaniches will be ordered to appear in court at a later date for arraignment. Platkin’s office noted that the charges in the indictment are merely accusations and the defendants are presumed innocent until proven guilty.
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