10 Charged in $40M Mortgage Scheme

Federal prosecutors in New Jersey are accusing ten people of participating in a $40 million mortgage scheme in three states.

Authorities say the group used phony documents and "straw buyers" to make illegal profits on overbuilt condominiums at the Jersey shore and at resorts in South Carolina and Georgia.

Prosecutors allege 66-year-old Joseph Witkowski and the others recruited buyers with good credit scores and little money.

Authorities say the group then created false documents to help the "straw buyers" get loans.

The group is accused of taking a portion of the proceeds after the loans closed.

Witkowski is charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. The other defendants are charged with conspiracy to commit wire fraud.

(Copyright 2012 by The Associated Press. All Rights Reserved.)