twitter linkedin
facebook google+
Search:

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.

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

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


Mortgage Crimes Yield Prison Time

Recent mortgage-related criminal actions

Aug. 20, 2010

By MortgageDaily.com staff


In separate cases, two women have been sentenced to prison for defrauding their bank employers by manipulating accounting records and reducing the amount owed on loans. A New Jersey man pleaded guilty to advertising a fraudulent mortgage scheme.

Roberta Stutzman was given a 75-month prison sentence by a federal judge in Philadelphia after pleading guilty in March to bank fraud, bank embezzlement and tax fraud, an announcement from the Federal Bureau of Investigation said. She was also ordered to pay more than $4 million in restitution.

According to the government, Stutzman was employed by National Penn Bank as the manager of retail loan accounting. She was also an assistant vice president of loan accounting in the retail loan origination department.

From 1996 until December 2008, she used her computer override authority to fraudulently create two lines-of-credit for her husband and two lines under false names, the statement said. She subsequently went in and deleted accrued interest. Her total alleged misappropriations were $4,414,538.

"Stutzman spent much of the embezzled funds on expensive vehicles, a vacation home, real
estate, costly jewelry, paid vacations and gifts," the news release said.

A 24-month sentence was handed down this week to Kimberly O. McAbee, 45, by U.S. District Judge G. Ross Anderson Jr., a statement from the U.S. Department of Justice said. The 45-year-old woman was a loan officer for Arthur State Bank in Woodruff from 1988 until December 2009.

Around November 2006, McAbee allegedly began manipulating mortgages and home-equity lines-of-credit owed by her family and friends to her Woodruff, S.C., employer. She was able to hide the crime by accessing the bank's expense accounts and Freddie Mac accounts. But her cover was blown on Christmas Eve 2009, when her supervisor discovered the embezzlement and notified law enforcement officials.

She reportedly admitted her crimes and expressed regret -- claiming she had planned to repay the money. In all, the government alleges McAbee embezzled $520,000.

A federal judge in Juneau, Alaska, sentenced Adam Jay Hendren to five years of probation and 250 hours of community service, the U.S. Department of Justice announced.

Hendren, 36, was a bank officer at Alaska Pacific Bank. He allegedly stole Alaska Airline Miles worth $8,503 from the company's corporate mileage account.

Hendren reportedly flew himself and his family for a year on the company's dime.

The Justice Department announced last month that Philip Pestrichello pleaded guilty following his February arrest. The defendant allegedly operated Preferred Platinum Services Network LLC, a home-based mortgage-postcard business that promised an income-earning business in exchange for a fee.

"Preferred Platinum Services Network promised consumers the opportunity to earn a 'weekly paycheck' by labeling postcards that advertised a product called the 'Mortgage Accelerator Program,'" the press release stated. "In fact, the Mortgage Accelerator Program itself
appears to have been a sham, non-existent product."

Around $1 million was fraudulently collected by Pestrichello, who pleaded guilty to one count of mail fraud and faces up to 20 years behind bars. The Bayville, N.J., man is scheduled for sentencing on Oct. 26.

Former Taylor, Bean and Whitaker Mortgage Corp. chairman Lee Farkas is being defended by a court-appointed attorney because he doesn't have access to his assets and can't pay his own attorney, the Star-Banner reported. Attorneys fees must either come from Taylor Bean's $5 million insurance policy or a carve-out from his assets, which government attorneys will only agree to once his attorneys submit a list of assets not previously disclosed.


United States of America v. Roberta L. Stutzman.
(U.S. District Court for the Eastern District of Pennsylvania).

In re. McAbee.
(U.S. District Court for the District of South Carolina).

In re. Hendren.
(U.S. District Court for the District of Alaska)

In re. Pestrichello.
(U.S. District Court for the Southern District of New York).


next story

back to current headlines


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

MBS

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