The U.S. Attorney’s Office for the Southern District of Florida says Patrick J. Mansell, 68, of Boca Raton, Fla., pleaded guilty to conspiracy to commit wire fraud to defraud government-sponsored entities, Fannie Mae and Freddie Mac.
Mansell is known as the vice president of Coastal States Mortgage Corporation.
The office alleges that Mansell admitted that his firm, Coastal, failed to remit some of the mortgage loan payoffs it received and processed from borrowers for submission to Freddie Mac and Fannie Mae.
Mansell faces a statutory maximum penalty of five years in prison and up to a $250,000 fine, the U.S. Attorneys Office said.
Authorities detailed the full scope of the scam in a press statement Tuesday.
The DOJ wrote:
This (scheme) resulted in an $18,735,903.77 loss to Freddie Mac and Fannie Mae. The misappropriation was concealed by the regular submission of false financial reports and monthly mortgage payments by Coastal, via an interstate internet portal, to Freddie Mac and Fannie Mae. These monthly mortgage payments by Coastal misled the lenders into believing the loans were still performing.
