Craig S. On, 62, Berkeley, California, pleaded guilty to one count of Conspiracy to Make a Materially False and Misleading Statement to an Accountant. On admitted that he did not inform auditors about approximately $67 million in potential losses from the sale of loans held by the bank.
Archives For Regulatory Violations
Martin E. Schmidt, Jr., 57, Beecher, Illinois, and Donna M. Barber, 53, also of Beecher, have pleaded guilty to federal charges for fraudulently creating false reports that made it appear that the bank’s loan portfolio was in better shape than it actually was.
Mark Feathers, 51, Los Altos, California, an investment manager, was indicted by a federal grand jury on twenty-nine counts of securities and mail fraud, relating to a multi-million dollar investment scheme. The defendant falsely represented to prospective investors that the investment funds would pay “Member Returns” of at least 7.5% from profits generated by the investment funds’ mortgage loan portfolios.
Intermundo Media, LLC, using the name Delta Prime Refinance, an Internet-based operation that finds potential borrowers for mortgage refinancing lenders, will pay a $500,000 civil penalty to settle charges that it deceived borrowers with false claims that they could refinance their mortgages for free.
Bell Holdings, Inc., and Bimija Limited Partnership, are the subjects of Administrative Complaints issued by the Florida Office of Financial Regulation charging each company with unlicensed mortgage lending activity.
Thomas Yu, 51, San Ramon, California, was convicted of Conspiracy to Commit False Bank Entries, Reports, and Transactions by pleading guilty to Count Six of the pending Superseding Indictment in this case. By failing to properly report poor performing loans, Yu admitted that he helped the bank avoid required loan loss reserves that enabled the bank to artificially inflate its reported earnings to the public.
Charles Lightbody, 54, Revere, Massachusetts, Dustin DeNunzio, 37, Cambridge, Massachusetts, and Anthony Gattineri, 56, Winchester, Massachusetts, have been indicted on state and federal charges in connection with their efforts to hide the financial interest of a convicted felon in a parcel of land in Everett, Massachusetts.
Hometown Lenders, LLC, NMLS No. 65084, Huntsville, Alabama, and its owners, William E. Taylor, Jr., William E. Taylor, Sr. and Byron Heath Quick entered into a consent order with the Georgia Department of Banking & Finance to resolve allegations that they employed two felons and transacted business with an unlicensed mortgage processing company.
Don A. Langford, 63, Gibsonia, Pennsylvania, a former senior vice president and chief credit officer of TierOne Bank, a publicly traded commercial bank formerly headquartered in Lincoln, Nebraska, pleaded guilty to defrauding TierOne’s shareholders and regulators by falsely inflating the value of TierOne’s loan and real estate portfolio. Continue Reading…
David Higgs, a former Managing Director in the Investment Banking Division of Credit Suisse Group, was sentenced to time served in connection with a scheme to hide more than $100 million in losses in a mortgage-backed securities trading book at Credit Suisse.