Homdel Man Pleads Guilty in Multi-Million Dollar Home Refinance Scheme

The Holmdel Financial scammer who trapped more than 40 homeowners in a ponzi scheme and laundered over seven-and-a-half-million dollars will hear his sentence March 22nd. Frederick Tropeano pleaded guilty Thursday in Monmouth County to First-degree Financial Facilitation of Criminal Activity (money laundering). For his role as an associate of Hawthorne Capital in Manalapan and New York.

The investigation leading to Tropeano's arrest began in May 2010 after a homeowner contacted the Monmouth County Prosecutors Office regarding concerns she had about her home refinance with Hawthorne. The homeowner indicated that a check sent by Hawthorne, that was intended to pay off her original mortgage, had bounced with non-sufficient funds to support its deposit. Further investigation uncovered widespread and ongoing fraud within the company.

Prosecutors are recommending seven to 14 years, with a 7-year period of parole ineligibility. They will also be recommending that Tropeano make full restitution to his victims as a condition of his sentence.

Silvano Tropeano (Frederick's Father), John Kosta and Krista Selig all pleaded guilty earlier last year to third-degree conspiracy charges and are pending sentence.