Former Bergen County Improvement Authority Chairman Ronald O’Malley was sentenced today to 24 months in prison for his role in a mortgage fraud scheme.
In addition to the prison term, the judge sentenced O’Malley to three years of supervised release and ordered him to pay a $25,000 fine.
O’Malley, 48, of Upper Saddle River, was a founder and co-owner of Diversified Financial Group, which did business as Residential Mortgage Corporation. Also sentenced was former Residential employee Laura-Jean Arvelo, 52, of River Vale, who received two years probation for her role in the scheme.
Both O’Malley and Arvelo had previously pleaded guilty to consiracy to commit wire fraud.
Between 2006 and 2009 O’Malley and others at Residential Mortgage filed false mortgage applications claiming applicants worked at the BCIA and elsewhere and then arranged for BCIA employees to confirm the claims of employment to banks and other mortgage lenders calling to verify the information.
The co-conspirators also created false asset information for borrowers, including using O’Malley’s own bank and brokerage account statements and substituting a borrower’s name and address over his own. They also prepared phony leases showing fake rental income for borrowers.