Loan officer pleads guilty to fraud

by Ryan Smith11 Feb 2014
A New Jersey loan officer has pleaded guilty to participating in a multimillion-dollar mortgage fraud scheme.

Klary Arcentales pleaded guilty in federal court to one count of conspiracy to commit bank fraud and four counts of bank fraud.

Between 2007 and 2012, Arcentales participated in a mortgage scam through the company where she worked as a loan officer, Premier Mortgage Services. She submitted fraudulent loan documentation to mortgage lenders on behalf of straw buyers. She profited from the fraudulent loans by receiving a commission from Premier on each loan closed and by diverting some of the proceeds of the mortgages to herself, according to the U.S. Attorney’s Office.

Two other members of the conspiracy had previously pleaded guilty. Lester Soto, 57, acted as a loan officer on some of the fraudulent mortgage application and received a cut of Premier’s profits. Linda Cohen, 56, was a paralegal who served as a settlement agent on loans borkered by Arcentales. Prosecutors say she prepared false “HUD-1” reports that claimed to reflect the sources and destinations of mortgage funds.

Arcentales’ sentencing is scheduled for May 19. She faces up to 30 years in prison and a fine of up to $1 million.

COMMENTS

  • by van | 2/11/2014 11:30:46 AM

    Sad part is she will never go to jail and never pay any restitution

  • by Ed | 2/11/2014 11:45:43 AM

    Even sadder is that these dummies never get it. How many of these stories to we have to read before they understand that they aren't going to get away with it? You can take this same story and just change the names and publish it tomorrow. They must believe that because they aren't getting caught at the moment of committing their crime they are going to get away with it. Don't they know they are creating the paper trail for any prosecutor to convict them Unbelievable! They should go back to whatever criminal enterprise they were involved in before they decided to join the mortgage business.

  • by M. Scott | 2/11/2014 3:48:51 PM

    A lot of these are from earlier years and it is just now catching up to them. They n others got away w it for so long that they believed they wouldn't be caught or punished. There also are some people being pursued who thought the mortgages they were doing were legit, but later found to be fraudulent.

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