ALBANY  - Kevin O'Connell, 35, of Albany, pled guilty in United States District Court in Albany to a one-count information charging him with the felony offense of laundering of monetary instruments in connection with his role in an extensive mortgage fraud scheme that defrauded financial institutions and other mortgage lenders of over $5.3 million in loans.

In court Thursday, O'Connell admitted his participation in a mortgage fraud scheme that occurred from at least July 2003 through December 2007, in connection with his former businesses PB Enterprises, Inc., and Greater Atlantic Associates, Inc., located on Central Avenue in Albany.  O'Connell admitted that, together with others, he knowingly and willfully executed a scheme to defraud banks and other mortgage lenders by arranging to secure excessive mortgages for numerous residential properties in the Capital District through the use of fraudulent loan applications and settlement statements, and by diverting mortgage funds for his personal use, and to others.  O'Connell admitted that the scheme operated in the following manner:

O'Connell agreed to forfeit criminal proceeds totaling over $4.6 million, and to pay full restitution.  O'Connell's sentencing is set for March 1, 2010.  He faces a maximum possible sentence of twenty years of imprisonment, a fine of up to $500,000, a period of up to five years of supervised release and the legal disabilities flowing from conviction of a felony.