A Fairlawn man was sentenced to more than three years in prison and ordered to pay more than $14 million in restitution for his role in a mortgage fraud scheme, federal prosecutors said Friday.
Jason Herceg, 37, pleaded guilty in U.S. District Court to his role in the Florida land deals and separate schemes to defraud two investors, prosecutors said.
Prosecutors say Herceg and his business partners sought out “straw buyers” who filed false bank loan documents. The banks ultimately loss $13.1 million on the land deals.
In a second scheme, Herceg and others defrauded two elderly people by selling them a Florida property for $7 million. Prosecutors say that just prior to the sale, Herceg and his associates bought the same property and inflated its value by approximately $2.5 million before reselling it to the victims.
One of Herceg’s partners was sentenced to three years in prison. A third is awaiting sentencing.