Four locals charged in alleged mortgage scheme
On March 13, detectives from the Monmouth County Prosecutor's Office arrested four individuals as a result of an investigation into a mortgage fraud scheme they say cost mortgage lenders over $4 million in bad loans.

The individuals arrested are John Pereless, 39, of Colts Neck, Kevin Deickmann, 34, of Red Bank, Ramon Iglesia, 24, of the Lincroft section of Middletown, and Susan Pereless, aka Susan Coonan, 65, of Tinton Falls.

A fifth individual, Erza Lustado, 34, of North Caldwell, turned himself in at the Monmouth County Prosecutor's Office in Freehold.

According to the Prosecutor's Office, all five individuals have been charged with one count each of second-degree conspiracy to commit theft by deception and seconddegree theft by deception.

An investigation conducted by the Prosecutor's Office led to charges that the named individuals participated in a conspiracy to file fraudulent mortgage applications as part of a scheme to obtain financing for seven different properties. Six of these properties are located in Monmouth County and one is located in Florida.

In addition to filing fraudulent applications, which exaggerated the financial position of the applicants, the values of the properties were inflated, and excessive fees were charged, according to a press release from the Prosecutor's Office. Funds from the closings were then funneled into various shell corporations.

Of the seven properties that were utilized in this scheme, the lenders have already foreclosed on six.

The investigation led prosecutors to another individual, John Deickmann, 27, of Red Bank, who was also allegedly involved in this scheme. On March 10, John Deickmann, accompanied by his attorney, Michael G. Celli Jr. of Long Branch, appeared before Superior Court Judge EdwardM. Neafsey in Freehold and entered a guilty plea to an accusation charging him with one count of third-degree misconduct by a corporate official in connection with this matter. He is scheduled to be sentenced by Judge Neafsey on May 23.

John Deickmann entered his guilty plea pursuant to a negotiated plea agreement with the Monmouth County Prosecutor's Office. The terms of that plea agreement provide that John Deickmann will provide truthful testimony regarding his role and the involvement of his co-defendants and that he will continue to cooperate with authorities.

Upon fulfillment of these conditions, the Prosecutor's Office said it would recommend that Judge Neafsey sentence John Deickmann to probation. John Deickmann is free on his own recognizance.

Bail was set at $750,000 for John Pereless, $500,000 for Kevin Deickmann, $100,000 for Ramon Iglesia, $500,000 for Susan Pereless, and at $100,000 for Erza Lustado. A condition of bail for each of the individuals is that they surrender their passports to the court.

Monmouth County Prosecutor Luis A. Valentin stated, "These defendants conspired to perpetrate a deliberate and substantial fraud, which victimized mortgage lenders and inevitably led to foreclosures. We will use all appropriate law enforcement resources to protect the Monmouth County community from the myriad of problems which emanate from real estate transactions conducted for criminal purposes."

TheMiddletown, Tinton Falls and Colts Neck police departments assisted in effecting the arrests.

Upon conviction, the second-degree crimes of conspiracy to commit theft by deception and theft by deception each carry a maximum potential state prison sentence of up to 10 years' imprisonment, with a statutory presumption that a custodial sentence be imposed. The maximum potential custodial sentence for a third-degree crime ofmisconduct by a corporate official is up to five years, but there is a statutory presumption for a first offender that a probationary sentence be imposed.