Federal Judge Freezes Assets Of OPFM / Image Masters Principal

(originally posted 10-20-07)
The Associated Press reports:

• A federal judge on Friday froze the assets of a mortgage broker that prosecutors suspect of defrauding hundreds of people out of millions of dollars. U.S. District Judge Yvette Kane issued the order late Friday afternoon against the assets and bank accounts belonging to Wesley A. Snyder. Snyder, 71, of Oley, filed for bankruptcy last month for six businesses and told about 800 customers in central Pennsylvania that he could no longer make mortgage payments on their behalf. Snyder has not been charged.

• Government lawyers provided probable cause to believe Snyder is running a Ponzi mail fraud scheme that has affected the customers and "numerous" financial institutions, Kane said. Officials believe he is trying to sell or otherwise encumber his property and assets.

[...]

• Federal prosecutors said his customers were primarily located in Lancaster, Lebanon, Cumberland, York, Berks and Schuylkill counties. The Lancaster Intelligencer Journal reported last week that the company's collapse also affected customers in at least six other states: Maryland, Delaware, Florida, North Carolina, Michigan and New York.

A civil lawsuit was filed late September alleging that Snyder and his companies have ripped off $40 million from 800 Pennsylvania residents in a so-called "wrap around mortgage" investment program.

For more, see Judge freezes assets of Pa. mortgage broker under investigation.

See also, Feds say mortgage scandal was fraud (In filing, U.S. Attorney's office makes accusation for first time) (Lancaster Online - 10-20-07).

Go here and go here for other posts and links to earlier media reports on the Pennsylvania Ponzi scheme involving Wesley Snyder, OPFM, Image Masters.