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Real estate magnate spared prison term for fraud scheme

November 21, 2019 GMT

NEWARK, N.J. (AP) — A New Jersey real estate magnate has been spared a prison term after he admitted defrauding lending institutions

James Demetrakis was sentenced Wednesday to two years of probation. The Englewood man had pleaded guilty in April to charges related to the scam.

Federal prosecutors say Demetrakis worked with a bank chairman between 2008 and 2013 to dodge lending limits and passed the money to the other man. They say false backdated sales contracts were entered to make it appear as if Demetrakis secured a $1.8 million loan to pay the bank chairman for his interest in a project.

Authorities say the scam secured more than $4 million in credit.