Politics & Government
Ex-BCIA Head Pleads Not Guilty to 68 Counts of Fraud
Former agency chairman, accused to using his position to commit fraud for his Ridgewood-based business, says he's not guilty.
Ex-Bergen County Improvement Agency Chairman Ronald O'Malley entered a plea of not guilty to the 68 charges of fraud federal prosecutors say he committed in a three year period as the county agency chair.
O'Malley stands accused of using his influence as head of the Bergen County agency to procure fraudelent mortgages through his private brokerage firm, the Ridgewood-based Residential Mortgage Corporation.
The former BCIA chair, prosecutors say, falsifed employment records and loan applications to secure loans for clients the firm claimed were employed by the BCIA. O'Malley's firm would then receive fees from the clients' approved loans, netting the business over $200,000 according to the federal prosecutors.
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O'Malley was accused in federal court by his former business partner, Edward Olimpio, 47, of Boonton, and Rachell Fischbein, 28, of Hillsdale, who admitted to conspiring with each other and others to commit wire fraud in connection with fraudulent mortgage and home equity loans brokered by Residential Mortgage between 2006 and 2009, according to U.S. Attorney Paul J. Fishman.
He's facing one count of conspiring to commit wire fraud, 25 counts of wire fraud, 21 counts of loan-application fraud and 21 counts of bank fraud in the indictment. one count of conspiring to commit wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
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The individual wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine; the bank and loan application fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine.
O'Malley's co-defendant, Laura-Jean Arvelo, who worked with O'Malley and held the title of vice president at Residential Mortgage and operated as his personal secretary, also pleaded not guilty to the charges. She faces 24 charges of fraud.
Both defendants have been held on $250,000 bail, and an expected trial date is Nov. 9, 2010.
O'Malley's attorneys were not available for comment.
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