Women plead guilty in mortgage fraud scheme

A Raleigh man also has been indicted in the case, which is part of Operation Malicious Mortgage, a government effort to crack down on mortgage fraud in the wake of lending practices that led to the collapse of the nation's credit markets. More than 1,400 people have been arrested across the country in the investigation since March, authorities said.

Kelley Anne Spaulding, 38, of Durham, and Elizabeth Whitaker Clement, 46, of Raleigh, pleaded guilty to conspiring to commit wire fraud. They will be sentenced later, when they face up to five years in prison and a $250,000 fine.

fraud, six counts of mail fraud and two counts of aggravated identity theft.

The indictment alleges that Loyd and the two women tried to defraud E-Loan, which offers mortgages and commercial loans online. The submitted phony statements of income and employment history in 2003 to obtain at least two mortgages, according to the indictment.