Franklin First Financial LTD and top executives have settled allegations of concealing loan defaults on government-insured mortgages.
At issue are 111 loans insured by the Federal Housing Administration that the Melville, New York, mortgage company hid delinquency on.
The Department of Justice accuses Franklin First and three senior executives of making “surreptitious payments” on loans that would have defaulted.
In addition, the payments were funneled through the Rainy Day Foundation, a
purported charitable organization.
Also named as defendants are Frederick Assini, chief executive officer; Christopher Bertman, chief operating officer; and Andrew Dauro, manager.
A consent agreement reached with the government has the defendants
admitting to making the improper payments to alter the company’s delinquency and default rates.
The defendants will pay $1.25 million, though the total settlements arising out of the Rainy Day Foundation matter are $2.399 million.
