Reel Tourz

NJ mortgage company president guilty in $139M scam - Yahoo! News

NEWARK, N.J. – The former president of a New Jersey mortgage company has pleaded guilty in a $139 million fraud scheme that bankrupted his firm.

Michael J. McGrath Jr. pleaded guilty Thursday to federal charges of mail and wire fraud and money laundering. He faces 12 1/2 to 20 years in prison when he’s sentenced Oct. 1. He’ll have to pay restitution.

The 46-year-old Montclair resident was president of Pine Brook-based US Mortgage Corp. He admits that from January 2004 through January 2009 he sold mortgage loans to the Fannie Mae government-controlled mortgage company without authorization of the credit unions that owned them.

He used the proceeds to fund operations of his company and to make personal investments.

This entry was posted on Saturday, June 27th, 2009 at 9:43 am and is filed under Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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