Industry News

Real estate investor pleads guilty to fraud

Scheme involved HUD-insured mortgages

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A former New Jersey real estate investor pleaded guilty Monday to charges that he conspired with others to commit mortgage fraud, officials said. Barry Fauntleroy, 39, admitted to causing the U.S. Department of Housing and Urban Development to insure mortgage loans for unqualified home buyers, enabling Fauntleroy and co-defendants to earn huge profits on the sale of run-down properties financed with fraudulent loans, according to U.S. Attorney Christopher J. Christie. Fauntleroy, currently of Atlanta, entered a guilty plea in U.S. District Court in Newark. Sentencing is scheduled for Jan. 23, 2006. Fauntleroy was president of EON Institute, a real estate holding company in New Jersey. On June 2, 2005, a federal indictment was returned alleging that from at least June 1999, through July 2001, Fauntleroy conspired with Devon Bowie, 53, of Malverne, N.Y., and others to prepare falsified loan applications and supporting documents that were submitted to the Federal Housing Administrati...