U.S. Attorney for the District of New Jersey Philip Sellinger announced Jan. 10 that Cabral Simpson, 47, of Orange, was sentenced to 20 months in prison (time already served) for conspiring to commit mortgage fraud.

Simpson previously pleaded guilty to a one-count indictment charging him with conspiring to commit wire fraud.

Prosecutors alleged that Simpson and his conspirators engaged in the scheme by creating fake bank statements and fake employee verification records for buyers of properties, transferring money into the buyers’ bank accounts for payment of the deposit for a property.

“Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers,” according to case documents and court statements released by the U.S. Attorney’s Office. “They also induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in losses.”

U.S. District Judge Julien Neals, who imposed the sentence on Jan. 10 in Newark federal court, also sentenced Simpson to two years of supervised release and ordered restitution of $1.29 million.

As of press time, NJBIZ was unable to reach a legal team for Simpson for comment.

Editor’s note: This story was updated at 7:41 a.m. ET to note that NJBIZ was unable to reach Simpson’s legal team for comment.

See also:

• North Jersey brothers sentenced for roles in health care fraud scheme
• New Jersey CEO charged in $35M fraud scheme (updated)
• Former NJ marketing firm owners sentenced for $8.8M health care fraud