Mar.18, 2010, 6:33 pm

CAMDEN — A North Jersey mother and daughter team have been named in a 10-count indictment regarding a mortgage fraud and money laundering scheme involving condominiums at the site of the former Grey Manor Motel in North Wildwood, according to the U.S. Attorney’s office.

The indictment charges that Patricia and Jamilah Smith, of Irvington, Essex County, conspired with others to obtain over $1 million of mortgage loans between December 2006 and February 2007 to purchase condominium units at the 2100 Surf Avenue complex at inflated prices.

Assistant U.S. Attorney R. Stephen Stigall, who is handling the government’s case, said that Patricia Smith, 45, and her daughter Jamilah Smith, 29, purchased two condos each.

According to property transaction records, Patricia Smith purchased Unit 7 in the building for $530,000 and Unit 8 for $500,000. Jamilah bought Unit 3 for $465,000 and Unit 6 for $525,000. All four units were purchased from Pinnacle Builders Inc.

According to the indictment, the conspirators arranged to sell the real estate properties to “straw purchasers” with good credit scores, but lacked the financial resources to get mortgage loans. The Smith women were identified as straw purchasers, a release stated.

The women lied on their loan applications using fake employers, inflated incomes, false bank account balances, and fictitious assets in order to induce the lenders to extend the mortgage loans.

In exchange for purchasing the properties in their names, the Smith women were promised that they would neither pay deposits or closing costs to acquire the properties and would receive an up-front kickback after the closing for allowing their names and credit information to be used to buy the condos, the release said.

The Smith women were charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, two counts each of wire fraud, and two counts each of money laundering exceeding $10,000.

Stigall said the women were arrested in Atlanta on June 10 last year, when U.S. Magistrate Judge Joel Schneider set bail for each at $20,000.

In the release, New Jersey U.S. Attorney Paul Fishman credited Special Agents of the FBI’s Atlantic City Resident Agency, and Special Agents of the IRS - Criminal Investigation Division’s May’s Landing Office for their tireless investigation leading to the indictment.

Stigall told the Herald the investigation was ongoing and additional arrests of other members of the conspiracy were possible.