NJ mortgage broker accused of applications fraud

NEWARK, N.J.

A New Jersey mortgage broker and former head of the Bergen County Improvement Authority has been indicted by a federal grand jury on charges of preparing fraudulent mortgage applications.

Forty-seven-year-old Upper Saddle River resident Ronald O'Malley was named in a 68-count indictment returned Tuesday. Also indicted was 51-year-old River Vale resident Laura-Jean Arvelo, who worked for him.

Both are charged with wire fraud, bank fraud and loan application fraud.

Prosecutors say O'Malley, Arvelo and others used phony documents and falsified applications to trick lenders into making mortgage loans and benefited from fees they received.

Defense attorney Joseph Rem says Arvelo denies the accusations against her and is "glad she'll have a chance to bring the full story to light."

O'Malley attorney Justin Walder hasn't returned an after-hours telephone message seeking comment.