Father, son indicted in $2.5 million Ocean County real estate scheme

A father and son from Bergen County who served prison time over money laundering charges were indicted for defrauding investors and mortgage lenders over $2.5 million through a Jersey Shore real estate scam, authorities said Monday.

The New Jersey Attorney General's Office on Monday announced a state grand jury indicted George Bussanich Sr., 65, of Park Ridge, and George Bussanich Jr., 43, of Upper Saddle River.

Both are charged with conspiracy, theft and money laundering, the Attorney General's Office said in a news release.

State prosecutors say both men used a "fix and flip" scheme of homes in Ship Bottom, Manahawkin and Surf City. An investigation was done by the Securities Fraud and Financial Crimes Prosecutions and the Violence Suppression and Organized Crime Bureau within the Division of Criminal Justice.

"These defendants allegedly defrauded investors and mortgage lenders for personal gain," New Jersey Attorney General Matthew Platkin said in a statement Monday. "We will remain steadfast in holding them accountable to deter these defendants and others from engaging in investment scams in New Jersey."

Bussanich's Sr.'s daughter, Melanie Whitney, pleaded guilty to theft by deception in March for her role and is awaiting sentencing.

Prosecutors say Whitney misled investors into partnering with her to invest in residential properties in Ocean County that could be renovated and later sold. Through the scheme, financing was secured through mortgage lenders based on the perceived increase in property value anticipated from the renovations.

However, Bussanich Sr. and Bussanich Jr. used the money for personal purposes, prosecutors said. They also laundered money through bank accounts and corporate entities they owned.

"These defendants cannot be allowed to prey on victims without fear of consequences," OSFFCP Legal Chief Pablo Quiñones said in a statement . "Bussanich Sr. and Bussanich Jr. allegedly deceived investors and mortgage lenders as part of a 'fix-and-flip' property investment scam and brazenly laundered the theft proceeds to enrich themselves. Our Office will continue to stand vigilant against financial fraud and do our part to ensure these offenders are brought to justice."

Both men were sentenced to prison for a similar scheme in 2019. They pleaded guilty in two multi-million-dollar scams that involved sales of fraudulent investments, defrauding 26 investors in one and 15 in another.

They agreed to pay $5.5 million, including about $4 million in restitution to settle a lawsuit filed by the New Jersey Bureau of Securities for the first scam. The second cost investors about $3 million.

Bussanich's Sr. was paroled in 2022, while his son was paroled a year earlier, according to state Department of Corrections records.

Contact Eric Conklin:[email protected] @ACPressConklin