A pair of former executives of a New York-based mortgage banker have been charged with duping secondary market lenders on mortgage purchases exceeding $40 million.
An indictment has been filed against Leib Pinter, 64, and Barry Goldstein, 59, U.S. Attorney for the Eastern District of New York Benton J. Campbell announced. The two were formerly principals of Brooklyn-based Olympia Mortgage Corp.
Pinter and Goldstein, who were charged with conspiracy, wire fraud and bank fraud, were scheduled to appear in court today.
When mortgages owned by Fannie Mae and serviced by Olympia were refinanced, Fannie would wire funds to Olympia. Funds that were supposed to be remitted to Fannie for the original loans were instead diverted to Olympia by Pinter, according to the indictment. After all was said and done, Fannie held nearly $44 million in unpaid, but refinanced, underlying mortgage loans.
Pinter faces up to 30 years in prison.
Goldstein is accused of selling a portfolio of 12 non-performing mortgage loans to Credit Suisse First Boston using falsified payment histories. He also faced up to 30 years in jail.
“Commercial banks and government loan guarantors assume some risk in assessing mortgage loans,” FBI Assistant Director-in-Charge Mershon said in the announcement. “But deliberate misrepresentation by unscrupulous mortgage brokers, lenders, or appraisers can trump even determined due diligence.”
Olympia lost its California mortgage banking license in 2004 following the suspension of the company’s New York mortgage banking license. At the time, proceeds were alleged to have been diverted on at least 270 loans totaling $35 million.
Related:
Brooklyn Firm Diverted Mortgage Payments, Proceeds
California regulators have taken action against a New York mortgage banker after N.Y. regulators suspended the company’s license in that state for diverting loan payments and proceeds.
