Ex-Brookyn Mortgage Company Exec Gets 97 Months For Pocketing $43M+ In Refinancing Proceeds, Leaving Fannie Mae Holding The Bag

From the U.S. Attorney's Office (Brooklyn, New York):

• [L]eib Pinter, a former executive of Olympia Mortgage Corp., was sentenced [last week] to 97 months in prison for orchestrating a scheme to defraud Fannie Mae in connection with mortgage loans which Fannie Mae owned but were refinanced through Olympia. Pinter was also ordered to pay more than $43 million in restitution to the victims of his fraud scheme.

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• Olympia, formerly headquartered in Brooklyn, New York, originated and serviced mortgage loans owned by Fannie Mae. When Olympia refinanced a Fannie Mae mortgage loan, Fannie Mae typically wire transferred the money to an Olympia bank account. Olympia was then required to pay off the underlying mortgage loan by remitting the outstanding balance to Fannie Mae. Instead, Pinter misappropriated these proceeds for the benefit of Olympia. When the fraudulent scheme was revealed, Fannie Mae held nearly $44 million in unpaid principal in refinanced mortgage loans.

For the U.S. Attorney's press release, see Former Executive Of Olympia Mortgage Corp. Sentenced For Wire Fraud Conspiracy.