A Staten Island, N.Y., dentist and a former employee were indicted in New Jersey federal court for allegedly operating a scheme to fraudulently obtain $1.36 million in mortgages.

Terrance D.

A Staten Island, N.Y., dentist and a former employee were indicted in New Jersey federal court for allegedly operating a scheme to fraudulently obtain $1.36 million in mortgages.

Terrance D. Stradford, 46, of Staten Island, N.Y., and Christina Hachadoorian, 35, of Burlington City, were charged in a 23-count indictment with one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, three counts of wire fraud and 18 counts of money laundering.

The indictment also contains a forfeiture allegation serving notice that the United States will seek forfeiture of all property, both real and personal, derived from proceeds of the scheme.

The indictment alleges that the two spent the proceeds of their so-called scheme on luxury items including the purchase of a 46-foot yacht, a North Carolina residence and a GMC Yukon Denali.

The defendants allegedly used fraudulent documents, made false statements, established fictitious companies and opened back accounts to fraudulently obtain mortgages secured by a property at 412-414 Commerce Lane, West Berlin, New Jersey, according to the indictment.

According to the Indictment, in October 1999, Stradford formed a limited liability company called 412-414 Commerce Lane. In forming the entity, Stradford named himself the sole owner and listed “C.L. Doorian” as a corporate agent, the indictment said.

In December 1999, Stradford, acting through 412-414 LLC, allegedly purchased the Commerce Lane property for $337,500 with a first mortgage in the amount of $310,000 held by American Business Credit Inc. In September 2002, Stradford encumbered the Commerce Lane property with a second mortgage in the amount of $244,756, the indictment said.

The defendants are each charged in Count 1 of the Indictment, which alleges a conspiracy to commit wire fraud, which carries a statutory maximum penalty of five years in prison and a fine of $250,000 or twice the aggregate loss to the victims or gain to the defendants.

Counts 2 through 4 charge both defendants with wire fraud, which carries a statutory maximum penalty of 30 years in prison and a fine of $1 million.

Count 5 charges the defendants with conspiracy to commit money laundering, which carries a statutory maximum penalty of 10 years in prison and a fine of $250,000. Counts 6 through 23 charge both defendants with money laundering, which carries a statutory maximum penalty of 10 years in prison and a fine of $250,000.

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