home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Wholesale Lending News | Directory | P r i cing Engine | Originator Newsletter
News about wholesale lenders, correspondent lenders and wholesale mortgage lending programs. Alt-A, subprime and other niche loan programs. Lawsuits between wholesalers and brokers.

Employee Arrested, Data At Large

Former Mortgage Lenders Network employee accused of extortion

May 3, 2006


photo of Patrick Crowley
A former employee of a large wholesale mortgage lender has been arrested and charged with trying to extort nearly $7 million from the company.

But authorities and Mortgage Lenders Network USA, based in Middletown, Conn., are concerned that the employee stole a computer containing sensitive information on customers.

Paul W. Schenkel, 36, was arrested by Middletown Police May 20 and charged with attempted larceny by extortion and computer crimes in the first degree, according to a written statement the police provided MortgageDaily.com.

Police obtained a warrant to search Schenkel's home and seized computer files and other items from the house, including Schenkel's personal computer. Police said they launched an investigation after receiving a tip from the company.

"Schenkel, a former employee, was trying to extort $6.9 million from the company," police said in the statement. "Schenkel is suspected of removing computer files from the company without authorization or permission."

Schenkel was released on a $250,000 bond and is scheduled to appear in court on May 30.

The company is saying little about the arrest, but it is cooperating with the investigation and is clearly concerned about the information Schenkel allegedly stole and has access to.

"Mortgage Lenders Network USA is aware of the press release distributed by the Middletown Police Department," the company said in a statement provided to MortgageDaily.com in an e-mail from spokeswoman Lauren Carmody.

"In conjunction with the statements made in the press release (the company) is working with the authorities towards a resolution of the matter," according to the statement.

A company lawyer and vice president, whose name was provided by police, did not return a phone call to comment.

Mortgage Lenders says on its corporate Web site that 2006 production goal is $12.1 billion. It says about 80 percent of its loans are subprime. The company said its servicing goal "is expected to grow to $15.6 billion with over 127,000 accounts" this year.

Police did not say how Schenkel was planning on allegedly trying to blackmail his former employer.

Thefts of computers and information on customers -- including Social Security numbers, bank accounts and credit histories -- has become a reoccurring problem in the mortgage industry.

A computer containing customer information is missing from Wells Fargo mortgage. The company said it was lost earlier this month while being shipped by a package delivery firm it has not identified. Customers have been notified.

And First Horizon Home Loans notified customers earlier this year that a computer containing similar information was stolen from an employee's home in Oregon.

The companies said in both cases they have no reason to believe any information was used to steal or access customers' identifies. The companies are also offering free credit monitoring to customers so they can detect if someone is trying to borrow money or establish accounts in their name.


Mortgage Company PCs Stolen
Pending mortgage loan applicants and existing borrowers of two major mortgage institutions were recently informed that personal computers containing their personal information were stolen.

Patrick Crowley is a feature journalist and blogger for MortgageDaily.com. He is also a reporter, blogger and columnist for The Cincinnati Enquirer.
e-mail Patrick at: [email protected]

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders