FOR IMMEDIATE RELEASE:
July 9, 2003

FOR FURTHER INFORMATION CONTACT:
Genene Morris (973)504-6327

NEWARK—The New Jersey State Board of Real Estate Appraisers yesterday suspended the license of Alexander Marcopul for his role in an alleged predatory lending scheme, Attorney General Peter C. Harvey and Consumer Affairs Director Reni Erdos have announced.

The decision comes after the State filed an administrative complaint against Marcopul in December before the Board. The State charged that Marcopul, a certified real estate appraiser from Bayonne, prepared and submitted misleading and fraudulent appraisals as part of an elaborate predatory lending and land flipping scheme that cheated low–income, minority consumers who sought to become homeowners. The State's four–count complaint before the Board focused on Marcopul's appraisals of four properties in Irvington and Newark.

Following a mitigation hearing yesterday to determine sanctions against Marcopul, who admitted the charges against him, the Board voted to suspend Marcopul's license for five years – three years of which must be served as an active suspension and two years served as a period of probation. The Board also ordered Marcopul to pay $20,000 in fines, plus investigative costs and attorneys fees. Prior to resuming practice, the Board ordered, Marcopul must pay the fines and costs imposed against him. In addition, during the probation period, Marcopul will be required to work under the supervision of a licensed real estate appraiser, to maintain a log of his work subject to the Board's review, and will be prohibited from supervising the work of others.

"By suspending Mr. Marcopul's license, the Board of Real Estate Appraisers is sending a clear message that these types of practices will not go unpunished in New Jersey," Attorney General Harvey said.

"Mr. Marcopul did more than fail to adhere to the standards of his profession, which by itself was grounds for disciplinary action by the Board," Erdos said. "His mischaracterization of the condition of certain properties put low-income home buyers at risk of losing their life savings

Marcopul admitted during the State's investigation into his activities that he failed to comply with certain provisions of the Uniform Standards of Professional Appraisal Practice and Board regulations. More specifically, Marcopul admitted that he failed to research the sales histories of the properties he was appraising and submitted appraisal reports that were false, inaccurate and replete with errors resulting in the values of the appraised properties being inflated. In addition, Marcopul admitted that he failed to review the Garden State Multiple Listing Services for important information on homes he was appraising and on properties he identified as being comparable to the residences he was appraising.

Marcopul remains the subject of a 33–count lawsuit filed by the State alleging violations of New Jersey's Consumer Fraud Act and Law Against Discrimination. The complaint, which names a total of eight companies and 13 individuals, alleges that Marcopul's fraudulent, misleading and inaccurate appraisals were used to carry out the land–flipping portion of the scheme that overly inflated property values. Land–flipping schemes typically refer to fraudulent transactions involving individuals buying property at a low price and then selling the property within a short period of time for a much higher price.

Harvey and Erdos noted that Board regulations adopted Monday will make it difficult for real estate appraisers who have lost their licenses as a result of disciplinary action by the board to evade the sanctions against them. Specifically, the new rule makes it a violation for licensed real estate appraisers who are in good standing with the Board to aid and abet real estate appraisers who are under active suspension or revocation in the unlicensed practice of real estate appraising.

"These regulations help to ensure that real estate appraisers whose licenses have been suspended or revoked do not continue to engage in and collect payment for real estate appraising services while under active disciplinary sanctions," Harvey said. Deputy Attorney General Megan Matthews of the Division of Law handled this case for the State.

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