Archives For Regulatory Violations

Mark Avalos, 50, St. Peters, Missouri, was sentenced to five years probation and ordered to pay $497,000 in restitution after pleading guilty to bank fraud charges relating to his work as the controller for The Mortgage Store (TMS) in 2008. In imposing sentence, United States District Judge Henry E. Autrey noted Avalos’s cooperation in the criminal investigation into the collapse of TMS in 2008.

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Mark A. Nixon, 62, Freedom, Oklahoma, former Executive Vice President of The Freedom State Bank was sentenced by United States District Judge Stephen P. Friot for his involvement in falsifying bank assets to the FDIC.

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John York, Wentzville, Missouri, was sentenced to 21 months in federal prison on charges of conspiracy to defraud the United States through his business, The Mortgage Store, Inc., in 2008.

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Ebrahim Shabudin, 66, Moraga, California, was convicted by a jury on seven felony counts of conspiracy, securities fraud, and other corporate fraud offenses stemming from the failure of United Commercial Bank.

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Hencorp Becstone Capital L.C., Miami, Florida, has agreed to pay $3.8 million to resolve allegations under the False Claims Act that it made false statements and claims to the Export-Import Bank of the United States in order to obtain loan guarantees.  Continue Reading…

MetLife Home Loans LLC has agreed to pay $123.5 million to resolve accusations that its MetLife Bank unit violated the False Claims Act by knowingly originating and underwriting Federal Housing Administration-insured mortgages that did not meet applicable requirements.

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Justin T. Brough, 39, North Las Vegas, Nevada, a former senior vice president of Bank of America, Las Vegas, pleaded guilty to misapplication of bank funds in a scheme that led to over $6.4 million in losses on two loans.

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Gary Patton Hall Jr., 49, Tifton, Georgia, a former bank president and CEO, was charged for his role in a bank fraud scheme in which he is alleged to have hidden under-performing and at-risk loans from the bank and the Federal Deposit Insurance Corporation, among others.

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Standard & Poor’s Financial Services LLC (S&P) and its parent company, McGraw-Hill Financial Inc., entered into a $210 million settlement to resolve federal and state civil claims related to S&P’s conduct in inflating ratings of residential mortgage-backed securities and structured investment vehicle notes.

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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.

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