(Source: Bloomberg Businessweek By EMERY P. DALESIO) – A crooked loan officer, a disbarred attorney and a third man could get long prison sentences for their role in a mortgage fraud that victimized two North Carolina banks, federal prosecutors said Thursday.The trio face sentencing this fall after pleading guilty on various counts. The U.S. attorney’s office in Raleigh said they defrauded Mount Olive-based Southern Bank and Trust and Dunn-based New Century Bank, causing losses of more than $1 million.

The fraud involving former Goldsboro real estate attorney William Devaughn Orander III and bank loan officer Mark David Webb, who worked at both banks, happened between 2004 and 2008. The case is the second time in the past year that politically well-connected New Century Bank has been named as a fraud victim.

Source: Bloomberg Businessweek By EMERY P. DALESIO

August 18, 2011, 4:12PM ET

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