A former mortgage broker was sentenced to five years’ probation and ordered to pay $4.2 million in restitution to 90 investors, according to a story in the Las Vegas Sun. David Ferradino, the former operator of insolvent Interstate Mortgage of Las Vegas, reportedly pleaded guilty to theft.
The story said that Ferradino allegedly collected $5.7 million from mostly local investors for two Las Vegas home-building developments, then passed the funds on to a company that he owned 50% of without the permission or knowledge of the investors.
Ferradino reportedly surrendered his mortgage broker’s license as part of a plea agreement in September and can no longer be involved in the mortgage broker business in Nevada. However, he is still allowed by the Nevada Real Estate Commission to maintain a real estate sales license, which his attorney indicates will enable him to “work and to pay the investors back.”
The Sun said the Clark County District Judge denied a request by the Deputy Attorney General to require Ferradino to make monthly restitution payments of $74,000 to the investors. Ferradino was, however, reportedly ordered to complete restitution to the investors by 2007 in annual payments.
The story went on to say that a hearing is scheduled Jan. 23 to determine if Ferradino has complied with the order.
In August, the Las Vegas Review-Journal reported that another Las Vegas Mortgage broker, Richard Wood, was gunned down outside his Las Vegas area home. Wood was accused of bilking millions of dollars from dozens of investors in a nationwide Ponzi scheme.
