California Man Sentenced to 51 Months in Prison for Mortgage Fraud

By
Education & Training with (retired) TN LIC# 290452

California Man Sentenced to 51 Months in Prison in Multi-Million-Dollar Mortgage Fraud

U.S. Attorney’s Office May 21, 2014
  • Eastern District of Pennsylvania (215) 861-8200

PHILADELPHIA—Steven Pitchersky, 65, of Rancho Mirage, California, was sentenced today to 51 months in prison for a scheme to defraud Ally Bank that resulted in losses to the bank of approximately $5.3 million. Pitchersky, who pleaded guilty to wire fraud on September 23, 2013, operated Nationwide Mortgage Concepts (NMC), a California mortgage lender.

Between August 2009 and January 2011, Ally was the warehouse lender for thousands of mortgage loans in which NMC borrowed from Ally’s warehouse line of credit to refinance first mortgages held by other financial institutions. Pitchersky made misrepresentations to Ally to secure the warehouse line of credit including his false representation that NMC had a current $10 million warehouse line of credit with a company named MPL. Pitchersky stated that the contact person for MPL was a man named “Rick Jay,” and he listed a phone number for Rick Jay. The phone number that was provided, however, was actually for Pitchersky’s cell phone, and MPL was the name of another business entity that Pitchersky ran. Over the next three years, Pitchersky represented to Ally multiple times that he had a warehouse lending relationship with this company.

Pitchersky used NMC’s $10 million warehouse line with Ally to obtain funds to refinance thousands of mortgages held by other banks for NMC customers. Ally required NMC to disburse funds through a third-party, commonly referred to as a title company. Pitchersky used a company called Hanover as the title company, but, unbeknownst to Ally, Pitchersky had created Hanover. This subterfuge allowed Pitchersky to have complete control over money NMC acquired from Ally’s warehouse line. Between December 2010 and January 2011, Ally advanced NMC approximately $5.3 million to pay off 23 first mortgages for NMC clients. NMC failed to use these funds to pay off these mortgages and instead used the money to pay off first mortgages for other customers. At the end of January 2011, Ally discovered that defendant and NMC had not used this money to pay off the 23 loans and ended the warehouse agreement with NMC.

In addition to the prison term, U.S. District Court Judge John R. Padova ordered restitution in the amount of $3,242,888, five years of supervised release, and a $100 special assessment.

In total, $17.2 billion in federal taxpayer bailout funds were invested in GMAC Inc., since rebranded as Ally Financial Inc., through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). As of April 9, 2014, Treasury owned 17 percent of Ally Financial, and $4.1 billion of the TARP investment remained outstanding.

“Greed got the best of Pitchersky, and, for his crimes, he will spend the next 51 months in federal prison,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Defrauding a recipient is the same as defrauding American taxpayers who funded TARP. Pitchersky drew down millions of dollars on a warehouse line of credit with Ally through lies and false pretenses, faking that he used Ally’s funds to pay off refinanced mortgages while, instead, he used the money in part to fund his luxurious lifestyle and extravagant art collection. SIGTARP and our law enforcement partners will bring justice to those committing crimes that threaten taxpayers’ TARP investments.”

The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorney David L. Axelrod.

http://www.fbi.gov/philadelphia/press-releases/2014/california-man-sentenced-to-51-months-in-prison-in-multi-million-dollar-mortgage-fraud?utm_campaign=email-Immediate&utm_medium=email&utm_source=fbi-in-the-news&utm_content=323711

Posted by



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
International International International
Groups:
Active Rain Newbies
Realtors®
Posts to Localism
Dedicated Bloggers
Addicted to Active Rain
Tags:
real estate fraud

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,570,710

David Saks

May God Bless You, Always. David
*
*
*
*
Spam prevention

Additional Information