Former CEO Sentenced in Warehouse Loan Fraud

Stephanie Abbott —  December 10, 2018 — Leave a comment

Matthew T. Voss, 43, Northport, New York, formerly the Chief Operating Officer of Long Island mortgage lender Vanguard Funding, LLC (Vanguard), was sentenced today to conspiring to commit wire and bank fraud in connection with the diversion of more than $8.9 million of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing.

Between August 2015 and March 2017, Voss and his co-conspirators at Vanguard engaged in a scheme whereby they obtained more than $8.9 million in short-term loans, referred to as warehouse loans, by falsely representing that the loan proceeds would fund specific mortgages, or refinance specific mortgages, for Vanguard clients.  Instead, Voss and his co-conspirators diverted the funds to pay personal expenses and compensation, and to pay off loans they had previously obtained through false loan applications.  https://www.justice.gov/usao-edny/pr/former-ceo-long-island-mortgage-lender-sentenced-24-months-imprisonment-89-million

Voss was sentenced to 24 months’ imprisonment to be followed by three years’ supervised release.  The amount of restitution will be ordered by the Court at a later date.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Maria T. Vullo, Superintendent, New York State Department of Financial Services (DFS), announced the sentence.

With today’s sentence, Matthew Voss has been held accountable for using his extensive knowledge of the mortgage industry to deceive banks that trusted and relied upon him as a business partner and divert money for his personal use,” stated United States Attorney Donoghue.  “This Office, together with our law enforcement partners, will vigorously investigate and prosecute those who commit fraud to advance their own financial interests at the expense of businesses and residents of our community.”

A compromised banking system threatens economic stability and the safety of the mortgage industry, which puts communities and the American institution of homeownership at risk,” stated FBI Assistant-Director-in-Charge Sweeney.  “Thanks to the dedicated work of our law enforcement partners, today’s sentence proves that those who use their expertise to deceive others for their own financial gain will be held accountable to the fullest extent of the law.”

As New York’s financial services regulator, DFS is proud to have worked with the U.S. Attorney’s Office and other law enforcement partners to hold this defendant accountable for his actions,” stated DFS Superintendent Vullo.  “DFS will continue to combat fraud and bring criminals to justice in order to safeguard the industry and protect consumers.”

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are in charge of the prosecution.

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Stephanie Abbott

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