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North NJ woman admits role in mortgage fraud

2-4-14

NEWARK, N.J. (AP) — Federal prosecutors say a northern New Jersey woman has admitted her role in a large-scale mortgage fraud scheme that caused millions of dollars in losses.

Klary Arcentales of Lyndhurst pleaded guilty Tuesday to conspiracy to commit bank fraud and four counts of bank fraud. The 45-year-old Arcentales now faces up to 30 years in prison and a $1 million fine when she’s sentenced May 19.

Arcentales engaged in the fraud between 2007 and 2012, when she was a loan officer for a mortgage company. Prosecutors say she provided false and fraudulent documents to financial institutions in connection with mortgage loan applications filed on behalf of straw buyers.

Arcentales then received commissions from her firm for each loan she closed. She also diverted portions of the mortgage proceeds to herself.