Published: Thursday, August 26, 2010, 2:28 PM

http://www.nj.com/news/index.ssf/2010/08/red_bank_mortgage-settlement_a.html

A Red Bank title and mortgage-settlement agent pleaded guilty today to money laundering and theft of $3.8 million by failing to pay off refinanced mortgages and instead losing the money in bad investments.

Ronald P. Mas Jr., 35, sole owner of Olde Gotham Title and Settlement Services, now faces up to 12 years in prison under a plea agreement with the state Attorney General’s Office.

Mas was supposed to take lump sums of money from 11 refinanced mortgages from lender Old Republic National Title Insurance Co. of Minneapolis, and pay off the old mortgages in full.

However, Mas admitted that he made only monthly payments of the old mortgages and instead moved the balances of refinanced funds from an Olde Gotham escrow account into a separate account with TD Ameritrade, “to conceal or disguise the source of the funds.” He then tried investing these funds to make money, but was unsuccessful.

“He was making investments that went bad,” said defense attorney Michael Wenning, noting that Mas had no prior criminal record.

The scheme began in April 2009, but by January Mas failed to pay off $1 million worth of old mortgages.

So, in February, Mas tried to reverse his fortunes in one fell swoop, by investing $2.8 million in options on Apple computers and gold, but both immediately fell in value, Wenning said.

Mas now was $3.8 million in the hole, and blew the whistle on himself. He retained Wenning and went to the authorities and turned himself in, Wenning said.

Mas pleaded guilty in Superior Court in Morristown to second-degree charges of money laundering and theft by failure to make required disposition of funds; and also pleaded guilty on behalf of the firm to another second-degree count of theft-by-deception.

Judge Thomas Manahan scheduled sentencing for Oct. 15. Each second-degree crime is punishable by up to 10 years in prison and a $150,000 fine. Under the plea agreement, Deputy Attorney General Francine Ehrenberg will recommend a five-year sentence on money laundering and a consecutive seven-year sentence on theft-by-deception, both with no mandatory minimum periods of parole ineligibility.

Mas also has signed a consent judgment agreeing to pay restitution to Old Republic National Title Insurance Co.