Fraudster used investors’ money to go to Cayman

The founder of a purported New Jersey real-estate investment business, NJ Affordable Homes Corp., was sentenced to 18 years in prison for defrauding mortgage lenders and investors of USD 100 million through a Ponzi scheme.

In April 2009, 61-year-old Wayne Puff admitted in federal court in Newark, New Jersey, that he conspired from 1998 to 2005 to get USD 120 million from investors by falsely touting the company’s profits as well as relying on phony mortgage documents.

Wayne Puff promised investors annual returns of 22%, however he defrauded lenders including Washington Mutual Inc., Greenpoint Mortgage Funding Inc. and Credit Suisse Group AG. Puff admitted using investor money to pay for trips to the Cayman Islands as well as credit-card expenses, restaurants and investor lawsuit settlements.

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