Pittsburgh, Pennsylvania – Randy Berger and Elleni Berger (also known as Elleni Klimantis) pleaded guilty in federal court to charges of Wire Fraud Conspiracy in connection with a mortgage fraud scheme. Elleni Berger also pleaded guilty to a charge of Filing a False Tax Return.

The Bergers operated All Credit Finance that was a mortgage broker company that assisted borrowers to obtain financing collateralized by real estate. The couple participated in a conspiracy in which they and other members of the conspiracy submitted fraudulent loan applications on behalf of borrowers that overstated their financial condition and a series of fraudulent documents that supported those misrepresentations.

In addition, Randy and Elleni Berger submitted appraisals that were fraudulent. The appraisals overstated the values of the properties that were serving as collateral for the loans and represented that they had been prepared by licensed appraisers when, in fact, they were not prepared by licensed appraisers.

Elleni Berger also filed false tax returns that were false in that they reported significantly less income than she actually earned.

United States District Judge, Joy Flowers Conti, scheduled sentencing for June 16, 2010. The law provides for a total sentence of 23 years in prison, a fine of $500,000, or both, for Elleni Berger, and a total sentence of 20 years in prison, a fine of $250,000, or both, for Randy Berger. Under the Federal Sentencing Guidelines, the actual sentences imposed are based upon the seriousness of the offense and the criminal history, if any, of the defendants.