The former owner of a Southern California mortgage banking firm has admitted that he duped his warehouse lender.
Back in 2007, National City Bank provided warehouse lines of credit to mortgage lenders through an operation that was located in Louisville, Kentucky.
The financial institution was a subsidiary of National City Corp., which was acquired by the The PNC Financial Services Group Inc. in late 2008.
In 2007 and 2008, one of the warehouse lender’s customers was Trust One Mortgage Corp.
The Irvine, California-based company was owned and operated by its former president and chairman,
Brady D. Bunte.
Last September, Bunte was indicted by the Department of Justice.
According to the
U.S. Attorney’s Office for the Western District of Kentucky, Bunte submitted 53 fraudulent funding requests for nonexistent home loans to National City between March 2007 and November 2008.
The bogus transactions allegedly generated $17.9 million in proceeds for Trust One and $12,744,678 in losses for PNC.
On Monday, the government announced that Bunte pled guilty to bank fraud.
His sentencing is scheduled for Nov. 2 before U.S.
District Judge Joseph H. McKinley Jr.
He faces up to 30 years in prison.
