David Findel, former CEO of Worldwide Financial Resources, a mortgage origination firm in New Jersey, was sentenced to 63 months in prison on September 27, 2011 for a connection with an $11 million fraudulent loan scheme.
Previously, Findel pleaded guilty to an Information charging him with wire fraud.
According to the Information to which Findel pleaded guilty and statements made in Trenton federal court:
Findel is the former CEO of Worldwide Financial Resources (“Worldwide”), which was in the business of originating residential home loans. Worldwide worked with borrowers to prepare mortgage applications and qualify the borrowers for home mortgages. Although Worldwide would originate the mortgage loans, after origination, Worldwide would re-sell the loans to another financial institution in the secondary mortgage marketplace.
Findel admitted he prepared and sold fake mortgage loans from 2008 through September 2009. Specifically, after Worldwide had originated a mortgage loan and sold that loan to a third-party lender, Findel would create a second set of fraudulent loan documents for the same property. He would then sell the second set of fraudulent loan documents to another third-party lender, even though the actual mortgage loan for that property already had been sold. As a result of these fake mortgage loans, Findel received over $11 million in illicit proceeds, which he used, in part, to maintain his lavish lifestyle – including his multimillion-dollar, exotic travel, and exclusive seating at a major New Jersey professional sports arena.
After Findel completes his 63 months (5.25 years) of prison he will then face three years of supervised release and have to pay $11,994,000 in restitution.
Findel also pleaded guilty to a separate Information on September 19, 2011 charging him with bankruptcy fraud after concealing assets from his trustee, U.S. Trustee and creditors in his bankruptcy are. He will be sentenced on that count on November 14, 2011.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
$11 Millon Loan Scheme Lands Former CEO In Prison by Amanda Miller
If you have been scammed and would like to file a scam report, please click here.