NY Mortgage Exec Pleads Guilty to Fraud Charges

NY Mortgage Exec Pleads Guilty to Fraud Charges

February 6, 2019
General Electric has agreed to a $1.5 billion settlement to resolve federal claims involving the alleged misrepresentation of sub-prime loans originated by its former sub-prime mortgage subsidiary WMC Mortgage
Edward E. Bohm, President of Sales and an undisclosed owner of Garden City, N.Y.-based mortgage lender Vanguard Funding LLC, pleaded guilty in federal court to conspiring to commit wire fraud and bank fraud related to the illegal diversion of more than $8.9 million of warehouse loans obtained by the company to fund mortgages. 
Bohm and his fellow Vanguard executives were charged with obtaining warehouse loans by intentionally misrepresenting that Vanguard would use the proceeds of those loans for funding mortgages or providing mortgage refinancing for Vanguard’s clients. However, the money obtained through these schemes, which occurred between August 2015 and March 2017, was diverted to pay personal expenses and compensation and to pay off other loans obtained by fraudulent loan submissions.
In February 2018, Edward Sypher Jr. and Matthew Voss, Vanguard’s Chief Operating Officer and the Chief Financial Officer, entered guilty pleas in connection with this scheme and received prison sentences. Bohm faces up to 30 years in prison for his role in this fraud.