Mortgage Broker Admits Defrauding Lenders

admin —  August 18, 2008 — 8 Comments

Richard J. Thomas, 44, Pittsburgh, Pennsylvania, pleaded guilty in federal court in Pittsburgh to a charge of mail fraud. Thomas pleaded guilty to one count before United States District Judge Joy Flowers Conti.

In connection with the guilty plea, Assistant United States Attorney Luke Dembosky advised the court that, from in and around May 2002 to in and around February 2007, Thomas, while employed as a mortgage broker with Penntowne Mortgage Group, LLC, defrauded lenders by taking out second and third mortgages on residential properties without the owners’ knowledge, diverting the proceeds and other mortgage transaction monies to his own use. The total losses in the scheme are $961,704.

Judge Conti scheduled sentencing for November 20, 2008 at 3:00 p.m. The law provides for a maximum sentence of twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.

The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Thomas.

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8 responses to Mortgage Broker Admits Defrauding Lenders

  1. THIS WHOLE STORY IS SO FABRICATED. THE WHOLE TRUTH IS NOT BEING TOLD. WHILE RICHARD THOMAS DID USE THIS MONEY FOR HIS OWN PERSONAL GAIN, HE DID NOT HAVE ACCESS TO ESCROW CHECKS AND HE DID NOT HAVE ANY KNOWLEDGE OF HOW THE TITLE SOFTWARE WORKED SO THOSE CHECKS COULD BE CUT. Richard Thomas’s Wife Kathleen Trainor Thomas (Kate) was a Settlement Title Agent for the Title Company that Richard did his loans through. Kate would divert the money, and then give it to Rick. Kate also used this money for her own personal gain. We are all being fooled by her fake act – she is the one who needs to be sent to prison – Kate is the brains behind this scheme – she has been doing it for years – its time to quit lying and take responsibility for what you have done.

  2. Obviously it has been some time since this post, and now that Richard has been sentenced and will report to fenderal prison in March, has anything come of the role that Kate played and the restitution that she deserve to pay. I have not seen much in the paper on her and am wondering if she is even being pursued still, or if Richard took the brunt of the blame on her behalf

  3. Interesting question about Kate. Wondered myself if he took the blame for everything. Saw him at some sporting events while his sentence was deferred, which is crap. Just saw she lost her insurance license in Ohio.

  4. It seems as though Kathleen Trainor has surfaced in the Pittsburgh area as the general manager of a funeral home. I am interested in learning more about this woman and more about the alleged scheme she was involved in. I am looking for as much background information as possible. If you are able to discuss the events of this incident, please follow up with contact information so I can get in touch with you. All conversations we have will be confidential.

  5. Kate was not sentenced, or reprimanded, she viturally got away scott free. She was working at a funeral home in Pleasant Hills, PA (Lebanon Church Road) then transferred to Michigan. Currently she is employeed at Borek Jennings Funeral Home. Unfortunatly her husband at the time did take the blame, and punishment to the crime she masterminded. However, stealing, cheating and lying are all sins, she can hide behind faith and the church all she wants, however, God will judge her one day.

  6. You people are all out of your minds! You know nothing about what you are discussing about vicious gossip. Kate lost everything in the “marriage ” to Rick Thomas. He turned out to be a con artist and took advantage a very hard working successful young woman. She left her home with nothing and started all over again! She is not the first woman to fall in love and be scammed!

  7. Not Exactly….. June 5, 2013 at 5:35 pm

    Wexford PA – wow ignorance must really be bliss….. perhaps prior to making inaccurate comments on this blog you need to understand what the title industry actually does and what Kathleen’s job description consisted of – she gave Rick access to all secure escrow funds – she physically handed him this money that she new would be supporting his gambling habit and her shopping habit, she knew exactly what she was doing because she had prior involvement in mortgage fraud while working for a different “company” sometimes the best liars are the cons themselves. If anything, I feel sorry for you, because you my friend are just another person this manipulating vindictive woman has tricked. Unfortunately Rick could not run away from his problems and wrong doings unlike Kate, who still lies and hides her dirty secrets, its ok though, one day she too will be judged for all the lives she has personally ruined.

  8. Wexford PA, you couldn’t be any further from the truth, and I truly feel sorry for you. Kate hurt many people, and still lives behind her stories and lies. Her and Rick were one in the same.

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