>Ridgewood mortgage broker pleads guilty to fraud scheme and wire fraud, names Bergen County Improvement Authority chairman as co-conspirator
Written by Carmine DeMarco
Thursday, July 22, 2010 01:25 PM
RIDGEWOOD, N.J. – The co-owner of Ridgewood, New Jersey mortgage brokerage firm Diversified Financial Group, d/b/a Residential Mortgage Corporation, and a former firm employee, both pleaded guilty today to wire fraud conspiracy in connection with a mortgage fraud scheme. In the process, the broker named the firm’s co-owner, Bergen County Improvement Authority Chairman Ronald J. O’Malley, as a co-conspirator in the fraud scheme.
Edward Olimpio, 47, of Boonton, New Jersey, and Rachell Fischbein, 28, of Hillsdale, New Jersey, both entered guilty pleas before United States District Judge Susan D. Wigenton, admitting that they conspired with each other and others – including a co-conspirator who during the relevant time period served as the Chairman and a Commissioner of the Bergen County Improvement Authority (BCIA) – to commit wire fraud in connection with fraudulent mortgage and home equity loans brokered by Residential Mortgage between 2006 and 2009.
According to an unnamed source, the BCIA commissioner named in court today was current Chairman Ronald J. O’Malley.
The federal court Information identifies the co-conspirator as “CC-1”, who “was a co-owner and principal of Residential Mortgage” along with Olivio. According to online sources of corporate information, such as Dunn & Bradstreet’s Hoovers service, O’Malley is on record as an owner and officer of Residential Mortgage.
