Former Rumson Property Owner and Family Indicted in Mortgage Scheme

A local developer, his niece, who owned property in Rumson, and other family members have been indicted in connection with an alleged mortgage fraud scheme dubbed "Operation Family Affair."

Christopher Colatrella, 40; John T. Colatrella, 49; Alexis Colatrella, 27; Vincent Veritas, 24, all of Wall; Delores Cittadino, 79, of Long Branch; Martin D'Amato, 27, of Colonia, and Clara Carr all were named in a 12-count indictment handed up by an Ocean County grand jury in Toms River.

Christopher Colatrella owns Wall-based CMC Holdings LLC; John T. Colatrella, his brother, owns Colatrella Properties; Alexis Colatrella, John's daughter, is a former employee of Mortgage Line Financial Services, as is D'Amato. Alexis Colatrella was listed as having owned property at 61 South Ward Ave., Rumson (see attached), which is now listed in foreclosure.

Veritas is John Colatrella's stepson, and Cittadino is John's mother-in-law. Carr's relationship to the others is unknown.

The group, except for Carr, was arrested in August in what the Ocean County Prosecutor's Office labeled "Operation Family Affair." According to information released at the time, the group bilked more than $2 million through a real estate deal flipping scheme.

According to the indictment, the fraud took place between May 25, 2007 and July 11, 2008 in Lakewood, Lakehurst, Toms River, Howell, Matawan and Wall.

Christopher Colatrella was indicted on two counts of first-degree financial facilitation of criminal activity, two counts of first-degree conspiracy to commit financial facilitation of criminal activity, and a count of second-degree conspiracy to commit theft by deception. The indictment alleges he directed the property transactions in an amount exceeding $500,000 and engaged others in the criminal activity.

Alexis Colatrella was indicted on two counts of first-degree financial facilitation, two counts of first-degree conspiracy to commit financial facilitation, three counts of theft by deception, and a count of second-degree conspiracy to commit theft by deception. The indictment alleges she falsified mortgage applications to Lehman Brothers Bank, JP Morgan Chase Bank and Washington Mutual Bank, each in excess of $75,000.

John Colatrella was indicted on two counts of first-degree conspiracy to commit financial facilitation of criminal activity and a count of second-degree conspiracy to commit theft by deception.

D'Amato was indicted on a count of theft by deception for allegedly falsifying a mortgage application to Bank of America, and conspiracy to commit theft by deception.

Carr was indicted on a count of theft by deception, for allegedly falsifying a mortgage application to American Partners Bank, and conspiracy to commit theft by deception.

Cittadino and Veritas each were indicted on a single count of conspiracy to commit theft by deception.

Ocean County Prosecutor Marlene Lynch Ford said the arrests were the result of a year-long investigation into the group's activities.

Christopher Colatrella, John Colatrella and Alexis Colatrella were released from the Ocean County Jail, Toms River, on $500,000 bail, no 10 percent, each, on Aug. 23 and all were required to surrender their passports. D'Amato was released on $100,000 bail, no 10 percent, on Aug. 23 and required to surrender his passport.

Bail information on Carr, Cittadino and Veritas was not available.