Newspaper article The Record (Bergen County, NJ)

Investor Pays $4.2M for Debt of Legislator

Newspaper article The Record (Bergen County, NJ)

Investor Pays $4.2M for Debt of Legislator

Article excerpt

A Washington Township-based bank will recoup the funds it had been seeking from Assemblyman Robert Schroeder after a Bergen County investment fund purchased millions of dollars in outstanding debt.

William Procida, who runs Procida Funding in Englewood Cliffs, purchased Schroeder's debt to Oritani Bank -- which he amassed through a number of unsettled loans -- for $4.2 million, a lawyer for the bank said Thursday.

In addition to the bank, dozens of people have filed lawsuits against Schroeder, who recently pleaded not guilty to charges that he stole more than $1.8 million from individuals who lent him money and that he wrote more than $3.4 million in bad checks to creditors.

It is still unclear what kind of legal recourse other litigants with pending actions against Schroeder will have as they seek repayment of millions in loans.

Oritani has filed seven lawsuits against Schroeder, a Washington Township Republican, since February, seeking repayment of debts "in excess of $3.5 million," as well as court-approved foreclosures on his properties, the lawyer said. Schroeder had secured six commercial loans with Oritani, offering up several properties as collateral, said Gary Redish, an attorney with the Hackensack-based firm Winne, Banta, Hetherington, Basralian & Kahn.

With Wednesday's debt purchase, those legal actions transferred to Procida, said Redish, who will now represent Procida.

Redish said he expects that foreclosure judgments against Schroeder's commercial property holdings will be approved in Superior Court in Mercer County over the next few weeks.

"Oritani Bank is very satisfied with this agreement, and so is Mr. Procida," Redish said.

Calls to Schroeder's attorney, John Whipple, were not returned Thursday.

Procida said Schroeder's debts have been acquired by the 100 Mile Fund, a real estate investment private equity fund managed by his office. …

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