Prosecutor: Investors lost over $1.1M

2:19 PM, Feb. 22, 2012

http://www.app.com/article/20120222/NJNEWS/302220051/Stafford-developer-charged-with-money-laundering

TOMS RIVER — A Stafford developer has been indicted in connection with a $1.1 million real estate scam on Long Beach Island, in which he is accused of obtaining financing from investors for construction projects on properties for which he had no ownership or authority to act, Ocean County Prosecutor Marlene Lynch Ford said today.

The indictment charges David Haugland, 39, of Beachview Avenue in the Manahawkin section of Stafford with financial facilitation of criminal activity, also known as money laundering, two counts of theft and one count of attempted theft.

The indictment also charges Haugland with three counts of issuing bad checks.

Ford said that in 2009, her office and Little Egg Harbor police began investigating alleged fraudulent business practices on the part of Haugland, a new residential construction contractor doing business as Haugland and Sons Construction.

“We allege that Haugland induced people to invest in his projects based upon certain false representations, including that he represented himself to be the record of owner or had authority to act on behalf of the owner of three properties located on Long Beach Island,” Ford said.

“Haugland induced the investors to give him money to finance the construction of new homes on these parcels, yet neither he nor his company, or any entity controlled by him, ever owned or had authority over the properties in question,” Ford said. “We allege that as a result of the fraudulent practices of Haugland, investors lost over $1.1 million.”

Haugland is free on $75,000 bail, posted after his arrest in September 2010. No court dates are scheduled, Ford said.

The investigation, headed by Senior Assistant Prosecutor Martin J. Anton, is continuing, Ford said. Anyone with information is asked to call prosecutor’s Detective James Conroy at 732-929-2027.