KEARNY —
Former Kearny Board of Education member and ex-Councilman John Leadbeater has been ordered to pay more than $3 million in restitution to victims of what federal prosecutors characterized as a multi-million-dollar home mortgage fraud.
Leadbeater, 59, pleaded guilty to a single count of conspiracy to commit wire fraud in connection with the scam that, according to the feds, used “straw buyers” and phony credit documents to purchase “overbuilt” condominiums in Wildwood and Wildwood Crest between May 2006 and August 2011.
For his role in the conspiracy, Leadbeater was sentenced July 7 to five years in federal prison and was ordered to surrender himself Sept. 19. The U.S. Bureau of Prisons has not yet announced where he will be serving his time.
As another part of the sentencing, in an order signed on July 27, Leadbeater was directed by U.S. District Court Judge Jerome Simandle, sitting in Camden, to pay back various lending institutions money they were defrauded.
Restitution “is due immediately,” the court order says. However, failing that, the court stipulates that, “the defendant shall satisfy the amount due in monthly installments of no less than $300, to commence 30 days after release from confinement.”
The total amount due is $3,347,241.02.
As per the court order, the disbursements are to be “made payable to the U.S. Treasury and forwarded to the Clerk, U.S. District Court [in] Trenton … for proportionate distribution to the following victims:
• Wells Fargo Home Mortgage, $170,363.80, as related to 216 E. Denver Ave., Unit 206, Wildwood Crest. Two other defendants in the case — John Bingaman and Sweetbriar Development Corp. — “may be subject to restitution orders to the same victims for these same losses,” the court said.
• Quantum Servicing, $316,697.85, as related to 618 W. Burke Ave., Unit 201, Wildwood. Defendants John Bingaman, Sweetbriar Development Corp. and Diana Wiseniewski may also be required to contribute to the victims.
• JP Morgan Chase, $1,781,287.70, as relates to 5501 Atlantic Ave., Unit 205, Wildwood Crest; 401 E. Stanton Ave., Unit 201, Wildwood Crest; 5501 Atlantic Ave., Unit 204, Wildwood Crest; 307 E. Poplar Ave., Unit 201, Wildwood; 305-307 E. Poplar Ave., Unit 200, Wildwood; 415 Heather Road (a/k/a 5700 Ocean Ave.), Unit 102, Wildwood Crest; and 411 E. Buttercup Road, Unit 103, Wildwood Crest. Defendants Bingaman, SDC, Wiseniewski, Michelle Martinez, Ernesto Rodriguez, Paul Watterson and Justin Spadley may also be liable for these properties.
• Bank of America, $598,303.51, as relates to 309 E. Poplar Ave., Unit 202, Wildwood; 415 Heather Road (a/k/a 5700 Ocean Ave.), Unit 306, Wildwood Crest; and 5601 Park Blvd., Wildwood Crest. Defendants SDC, Wiseniewski, Martinez, Rodriguez, Watterson, Robert Horton and Joel Tirado may also be liable.
• Matrix Servicing (Allied Bank), $272,209.31, as relates to 106 W. Sweetbriar Road, Wildwood Crest. Defendants SDC, Wiseniewski and Dana Rummerfeld may also be liable.
• Aurora Bank, $208,378.85, as relates to 616-620 W. Burke Ave., Unit 100, Wildwood. Defendants SDC, Wiseniewski, Tirado and William Mendelson may also be liable.
— Ron Leir
