David Fili, Jr., 45, Drexel Hill, Pennsylvania, was charged by information with 10 counts of wire fraud and two counts of bank fraud in a $9.7 million scheme for allegedly representing to numerous lenders that they were purchasing first mortgages, when in fact, they were second mortgages.
From 2005 to March 2013, Fili was co-owner of Capital Financial Mortgage Corporation (“CFMC”), based in Delaware County, Pennsylvania. According to the information, during that time, Fili defrauded numerous lenders into purchasing mortgages issued by CFMC that were represented as first mortgages but that were, in reality, worthless second mortgages.
He also allegedly defrauded other lenders who loaned money to CFMC on a warehouse line of credit. The information alleges that Fili helped defraud lenders out of approximately $9.7 million, some of which Fili used to pay his own mortgage on a vacation home and for extensive casino and sports gambling.
If convicted, Fili faces a potential advisory sentencing guideline range of 78 months to 135 months in prison, a five-year period of supervised release, full restitution, a fine of up to $10.5 million, and a $1,200 special assessment.
United States Attorney Zane David Memeger announced the charges.
The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.