NY Mortgage Exec Pleads Guilty to Fraud Charges

Feb 06, 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.

About the author

Phil Hall

Link copied

Published

Feb 06, 2019

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

The September jobs report gave the mortgage market something it hasn't had much of lately: downward pressure on Treasury yields.U.S. employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the Bureau of Labor Statistics. The ...

Wholesale

The Loan Store Rebrands As Averra Financial

The wholesale lender is adopting a new identity three years after acquiring Homepoint’s wholesale business and rising to No. 4 in industry rankings

The Loan Store has a new name after a three-year expansion that transformed the once-small wholesale lender into one of the largest players in the broker channel.The Tucson, Arizona-based lender has rebranded as Averra Financial Inc., effective immediately, the company annou...

Nov

Houston, TX

More from

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Analysis and Data

Oct 02, 2026

Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Analysis and Data

Oct 01, 2026

Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Analysis and Data

Sep 29, 2026

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Analysis and Data

Sep 25, 2026

Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Analysis and Data

Sep 25, 2026

Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Tech

Sep 23, 2026

Popular