NJ man accused of $80M mortgage fraud

June 11, 2008 5:18:55 AM PDT
The man who founded NJ Affordable Homes Corp. has been arrested and accused of cheating investors and mortgage lenders out of about $80 million.FBI agents and Manalapan police arrested 60-year-old Wayne Puff on Tuesday.

The Old Bridge man was charged in a federal complaint with wire fraud and obstructing justice through a pyramid scheme. Each count carries up to 20 years in prison and a $250,000 fine.

Authorities had no immediate information on a defense lawyer. A bail hearing is expected on Wednesday.

Federal prosecutors say Puff's company, based at times in Perth Amboy and Woodbridge, cost hundreds of investors about $55 million and financial institutions about $25 million. Six others have already pleaded guilty in the scheme.