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MORTGAGE OFFICIAL PLEADS GUILTY TO CREDIT-CARD FRAUD

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Jeffrey M. Harris, one of the principals in the Federal Mortgage Corp. scam earlier this year, has pleaded guilty to one count of credit-card fraud and faces a probable prison sentence.

Harris, vice president of Federal Mortgage, pleaded guilty Friday to one charge of credit-card fraud, a second-degree felony, after prosecutors agreed to drop a second fraud charge. He will be sentenced Nov. 3 before 4th District Judge Ray L. Park.Harris received a suspended prison sentence in June after pleading guilty, along with his brother, Craig, to a litany of charges involving Federal Mortgage. The brothers admitted running a racketeering enterprise in which lenders, borrowers and investors were bilked out of millions of dollars between March 1987 and April 1989.

Jeffrey Harris was given a six-month jail term with work release, while Craig Harris was sentenced to one to 15 years in the state prison.

Jeffrey Harris was arrested at the jail in July on new charges of credit card fraud stemming from activities alleged to have occurred while he was on work release from the jail. His work release privileges were subsequently revoked.