GTL Investments, Inc., doing business as John Adams Mortgage Company, Southfield, Michigan, a mortgage lender, has agreed to pay $4.2 million to resolve allegations that it violated the False Claims Act in its origination of loans backed by the federal government.
Archives For Regulatory Violations
Golden First Mortgage Corp., and its owner, operator and President, David Movtady, have settled a civil mortgage fraud lawsuit alleging misconduct in connection with Golden First‘s participation in the FHA Direct Endorsement Lender Program.
Wilbur Anthony Huff, Kentucky, pleaded guilty to bank fraud charges admitting that he engaged in a scheme to prevent Park Avenue Bank, New York, New York, from being designated as “undercapitalized” by regulators – a designation that would prohibit the bank from engaging in certain types of banking transactions, and that would subject the bank to a range of potential enforcement actions by regulators.
Douglas Green, 50, Boca Raton, Florida, a former collateralized mortgage obligation bond trader was sentenced to 30 months in prison for engaging in a fraudulent trading scheme in which he manipulated the prices of CMOs by millions of dollars over a period of four years.
Gilbert G. Lundstrom, 72, Lincoln, Nebraska, the former Chief Executive Officer of TierOne Bank, a publicly traded commercial bank formerly headquartered in Lincoln, Nebraska, was charged for his role in a scheme to defraud TierOne’s shareholders and mislead regulators by concealing the declining value of its loan and real estate portfolio.
Craig S. On, 62, Berkeley, California, pleaded guilty to one count of Conspiracy to Make a Materially False and Misleading Statement to an Accountant. On admitted that he did not inform auditors about approximately $67 million in potential losses from the sale of loans held by the bank.
Martin E. Schmidt, Jr., 57, Beecher, Illinois, and Donna M. Barber, 53, also of Beecher, have pleaded guilty to federal charges for fraudulently creating false reports that made it appear that the bank’s loan portfolio was in better shape than it actually was.
Mark Feathers, 51, Los Altos, California, an investment manager, was indicted by a federal grand jury on twenty-nine counts of securities and mail fraud, relating to a multi-million dollar investment scheme. The defendant falsely represented to prospective investors that the investment funds would pay “Member Returns” of at least 7.5% from profits generated by the investment funds’ mortgage loan portfolios.
Intermundo Media, LLC, using the name Delta Prime Refinance, an Internet-based operation that finds potential borrowers for mortgage refinancing lenders, will pay a $500,000 civil penalty to settle charges that it deceived borrowers with false claims that they could refinance their mortgages for free.
Bell Holdings, Inc., and Bimija Limited Partnership, are the subjects of Administrative Complaints issued by the Florida Office of Financial Regulation charging each company with unlicensed mortgage lending activity.