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.
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