CHARLOTTE, N.C. (AP) -- A Charlotte loan officer has pleaded guilty to taking part in a mortgage-fraud ring that prosecutors say rigged more than $158 million in home loans across the Carolinas.
The Charlotte Observer reported the scam resulted in millions of losses to federal loan programs.
The U.S. attorney's office said 37-year-old Joseph Klakulak approved more than a third of the loans. Klakulak pleaded guilty Tuesday to conspiracy to defraud the United States and making false statements to federal investigators.
He faces up to five years in prison and a $250,000 fine when is sentenced.
Prosecutors said Klakulak was one of three loan officers accused of participating in the six-year scheme.
Prosecutors say the loan officers worked with Greensboro-based Phoenix Housing Group, a manufactured home company.