A former employee of the $336 million Paragon Federal Credit Union in Montvale, N.J., is one of 12 people indicted for launching more than $3 million in mortgage fraud against the 44,000-member credit union.
Bergen County Prosecutor John Molinelli alleges that Dawn Woolbert, a loan coordinator for Paragon, falsified information on other conspirators' CU membership applications as well as personal income for the conspirators and appraised values of the property that was the fraud vehicle.
Woolbert would then be paid a set amount per loan approved through the CU, Molinelli alleged in the indictment.
Officials began investigating the possibility of fraud after Paragon began to note how many its mortgage loans had gone delinquent, the prosecutor said.
No one from Paragon was immediately available for comment.