Loan officer pleads guilty to fraud

A New Jersey loan officer has pleaded guilty to participating in a multimillion-dollar mortgage fraud scheme

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.