David Saks: February 2012

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663


Fraudster Sent to Prison for Falsifying VOE Forms

Ronald J. O'Malley, 48, Upper Saddle River, N.J., former chairman and commissioner of the Bergen County Improvement Authority ("BCIA") and principal in a mortgage brokerage firm, was sentenced to 24 months in prison in connection with a mortgage fraud scheme that falsely claimed BCIA employment for numerous mortgage borrowers.

O'Malley was a founder and co-owner of Diversified Financial Group, d/b/a Residential Mortgage Corporation ("Residential Mortgage"), Ridgewood, New Jersey. Former Residential Mortgage employee Laura-Jean Arvelo, 52, River Vale, New Jersey, also was sentenced and received a two-year term of probation.


As previously reported by Mortgage Fraud Blog, both defendants previously pleaded guilty to a count of conspiracy to commit wire fraud. The defendants admitted that they conspired with each other; Residential Mortgage co-owner Edward Olimpio, 48, Boonton, New Jersey; two other Residential Mortgage employees, Daniel Gilmore, 31, Hackensack, New Jersey, and Rachell Fischbein, 30, River Edge, New Jersey; and others to commit wire fraud in connection with fraudulent mortgage and home equity loans brokered by Residential Mortgage between 2006 and 2009. Both entered guilty pleas before U.S. District Judge Dennis M. Cavanaugh, who also imposed the sentences today in Newark federal court.

According to the indictment, other documents filed in this case, and statements made in court:

The participants in the mortgage fraud scheme falsely represented on mortgage loan applications and other documents that certain borrowers were employed by the BCIA when they were not. In support of the false representations, O'Malley and his coconspirators arranged for the BCIA staff to falsely confirm the borrowers' employment to banks and other mortgage lenders calling to verify the information. O'Malley and his co-conspirators also created and arranged for the creation of false and fraudulent BCIA paystubs and W-2 forms, which were also submitted to lenders.

O'Malley and his coconspirators also made false representations regarding borrowers' employment at places other than the BCIA, and created similar false documentation in support of such claims. The coconspirators also created false asset information for borrowers, including by taking O'Malley's own bank and brokerage account statements and "cut-and-pasting" a borrower's name and address over his own. They also prepared phony leases showing fake rental income for borrowers.

In addition to the prison term, Judge Cavanaugh sentenced O'Malley to three years of supervised release and ordered him to pay a $25,000 fine.

Olimpio, Fischbein, and Gilmore previously entered guilty pleas before U.S. District Judge Susan D. Wigenton, admitting to conspiring with O'Malley, Arvelo, each other, and others to commit wire fraud in connection with the scheme. They await sentencing.

U.S. Attorney Paul J. Fishman announced the sentences.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael Ward, and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge JoAnn S. Zuniga, with the investigation.

The government is represented by Assistant U.S. Attorney Rachael A. Honig, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Christine I. Magdo in Newark.

Defense counsel: O'Malley: Justin P. Walder Esq., Roseland, N.J.; Arvelo: Joseph Rem, Esq. Hackensack, N.J.

David Saks

Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.


Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.





"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


  Real Estate Crimes


Click "HERE" For Today's Question



TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis



America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • February 15 2012 09:15PM
Fraudster Sent to Prison for Falsifying VOE Forms Ronald J. O'Malley 48, Upper Saddle River, N. J., former chairman and commissioner of the Bergen County Improvement Authority ("BCIA ") and principal in a mortgage brokerage firm,… more
Federal Prosecutors Target White-Collar Criminals in Middle Tennessee U. S. Attorney’s Office February 14, 2012 Middle District of Tennessee (615) 736-5151 .. more
Mortgage Fraud Money Used to Fund Marijuana Grow Houses Roberto Caro 41, Miami-Dade, Florida, has pled guilty to one count of money laundering in connection with a mortgage fraud scheme and one count of conspiracy to manufacture and possess… more
Two Area Contractors Charged with Fraud Involving Minority and Women Set-Asides for Government Construction Contracts U. S. Attorney’s Office February 14, 2012 Northern District of Illinois (312)… more
Easy to Understand Foreclosure-Abuse Settlement Explanation for the…
States, Banks Reach Foreclosure-Abuse Settlement U. S. states have reached a $25 billion deal with the nation's biggest mortgage lenders over foreclosure abuses that occurred after the housing bubble burst. Federal and… more
The Meta Tag Analyzer
Attorney General Launches "Consumer Protection Working Group…
Attorney General Eric Holder Launches Consumer Protection Working Group to Combat Consumer Fraud Working Group Created Under President Obama’s Financial Fraud Enforcement Task Force Brings Together Federal, State, and Local Partners … more
Middle Tennessee Home Sales Start the Year Mixed
Middle Tennessee Home Sales Start Year Mixed January home sales fell off from December, but closings easily topped figures from a year ago, according to the Red Report. Total closings went up 8… more
Agent Found Guilty of Forgery Kelli Stump admitted that she wasn't coerced or promised any perks from Brenda K. Hatfield, her former boss at Coldwell Banker Shook in Lafayette Indiana, when she forged… more
Real Estate Practice : Lesson 1530
#1530 When a safety clause is added to a contract for the listing of a property it basically creates a measure of safety for the broker which effectively entitles the broker to a… more