Four California residents face prison time and thousands of dollars in fines for allegedly defrauding lenders out of $900,000. The U.S. Attorneys Office in Sacramento charged Olga Palamarchuk, 41, Pyotr Bondaruk, 40, Peter Kuzmenko, 33, and Vera Zhiry, 32, claiming the group fraudulently obtained financing for two homes and an equity line of credit. Palamarchuk, a loan officer for Capital Mortgage Lending, is accused of recruiting Bondaruk to buy two houses using 100% financing. The pair submitted fraudulent loan applications, falsely stating Bondaruk’s employment, income and occupancy status to lenders. The indictment contends the pair diverted $32,378 in seller proceeds to a pool service company under Kuzmenko’s name for repairs and improvements that never took place. Another $100,000 was allegedly distributed to Vera Zhiry to pay off a second mortgage. The defendants face conspiracy to commit mail fraud charges, which carry a maximum prison term of 20 years. They also are facing money laundering charges, which carry 10-year prison terms, and a $250,000 fine. If Palamarchuk and Bondaruk are convicted of bank fraud, they face up to 30 years in prison and a $1 million fine. Write to Kerri Panchuk.

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