Bergen County Improvement Authority Chairman Accused of Role In Scam

A co-owner and employee from an area mortgage corporation implicated the chairman of the Bergen County Improvement Authority Thursday in a mortgage fraud scheme, admitting in court to their own roles in the scam.

The pair, both from the Ridgewood-based Residential Mortgage Corporation, pleaded guilty to wire fraud conspiracy in connection with the mortgage fraud scheme, according to the U.S. Attorney's Office.

Edward Olimpio, 47, of Boonton, and Rachell Fischbein, 28, of Hillsdale, 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.

Olimpio, the co-owner, identified BCIA chairman and firm co-owner Ronald O'Malley in court as a conspirator in the fraud. U.S. Attorney's Office spokesperson Rebekah Carmichael could not confirm O'Malley's involvement, but said the office would pursue allegations as part of its ongoing investigation.

A spokesman for the BCIA told NorthJersey.com that O'Malley has resigned. The spokesman stressed that O'Malley has not to date been charged in connection with the fraud, and urged against a rush to judgement.

Members of the Passaic Street, Ridgewood firm did not immediately return requests for comment.  

Both firm representatives entered guilty pleas before U.S. District Judge Susan D. Wigenton. According to states made in court, Olimpio and Fischbein would falsely represent on mortgage loan applications and other documents that certain borrowers were employed by and received salaries from the BCIA, when those individuals did not work there.

The pair also arranged for the BCIA staff to falsely respond to telephone calls from banks and other mortgage lenders seeking to verify borrowers' employment, according to the U.S. Attorney. They admitted they and their co-conspirators created and arranged for the creation of phony BCIA pay stubs and IRS W-2 forms, which were also submitted to lenders.

Both defendants pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential penalty of 20 years in prison and a $250,000 fine, according to the U.S. Attorney's Office.