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N.D. (AP) – Two people charged in the case of a defunct Arizona mortgage lender accused of swindling Bismarck-based BNC National Bank out of about million have pleaded guilty.

Lauretta Horton, former director of accounting with American Mortgage Specialists Inc., and David Kaufman, an independent auditor, are among four people charged in federal court. 

Two AMS executives, Scott Powers and David McMaster, pleaded guilty earlier to conspiracy to commit bank fraud and wire fraud.

Authorities say AMS defrauded the bank by providing it with false financial statements and other information about the status of loans the bank had financed.

Authorities say the 69-year-old Kaufman lied to investigators. He’s facing 10 years in prison.

The 45-year-old Horton is accused of inflating assets and altering other financial information. She’s facing five years in prison.

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