Archives For Regulatory Violations

Poppi Metaxas, 62, Hillsborough, California, the former President and Chief Executive Officer of Gateway Bank, FSB, pleaded guilty to conspiracy to commit bank fraud for her role in defrauding the bank of more than $1.8 million in the aftermath of the financial crisis.

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Michael T. Rand, 52, Sandy Springs, Georgia, was sentenced by U.S. District Judge Robert J. Conrad, Jr. to 120 months in prison and to three years of supervised release on conspiracy and obstruction of justice charges in connection with federal investigation into a seven-year accounting/sales fraud conspiracy at Beazer Homes USA, Inc.

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Max Wagenblast, 35, Arlington, Virginia, pleaded guilty today to wire fraud in connection with a scheme to steal over $5 million from his company, which was the second largest Special Servicer of commercial real estate mortgages in the United States.

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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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