A 39-year-old Norwood woman was charged in federal court yesterday in connection with a $4.9 million mortgage fraud scheme.

Elizabeth Reed was charged with 40 counts of wire fraud and 15 counts of money laundering, according to the U.S. Attorney’s Office, District of Massachusetts.

In 2005 and 2006, Reed allegedly purchased a 24-unit building in Dorchester to convert to condominiums while she owned and operated Mass Lending LLC, a loan origination business. She allegedly recruited straw buyers to buy the condominiums as investments by promising buyers they would not have to make any down payments or pay any closing costs or other expenses relating to the units, but would share in the profits when the units were resold.

It is also alleged that Reed caused fraudulent mortgage loan applications and closing documents in the names of buyers to misrepresent that borrowers had made large down payments and paid significant closing costs; that borrowers had income and assets in excess of their real income and assets; and that borrowers intended to live in the condominiums as their own residences.

If convicted on the wire fraud charges, Reed faces up to 20 years in prison, to be followed by three years of supervised release, and a $250,000 fine on each count, according to a statement. Each count of money laundering carries a sentence of up to 10 years in prison to be followed by three years of supervised release and a $250,000 fine.