OKLAHOMA CITY – Yesterday, RONALD J. MCCORD, 70, of Oklahoma Metropolis, pleaded responsible to defrauding two locally-based banks, Fannie Mae, and others by means of a broad vary of fraudulent conduct over the course of three years, introduced Performing U.S. Lawyer Robert J. Troester.
McCord was the Chairman and founding father of First Mortgage Firm, LLC (“FMC”), an Oklahoma Metropolis-based mortgage lending and mortgage servicing firm. On June 3, 2020, a grand jury returned a 24-count Indictment towards McCord. The fees included financial institution fraud, cash laundering, and making a false assertion to a monetary establishment.
Yesterday, McCord pleaded responsible to 5 counts of the Indictment.
In keeping with court docket paperwork and yesterday’s plea listening to, McCord admitted to defrauding Spirit Financial institution (“Spirit”) and Residents State Financial institution (“Residents”)—two state-chartered monetary establishments—in addition to their respective residential mortgage subsidiaries, American Southwest Mortgage Company (“Mortgage Corp.”) and American Southwest Mortgage Funding Company (“Funding Corp.”). An impartial audit found that McCord had offered greater than $14,100,000.00 in Spirit/Mortgage Corp. and Residents/Funding Corp. loans “out of belief” by failing to repay Spirit/Mortgage Corp. when sure Spirit/Mortgage Corp.-initiated loans have been refinanced or in any other case paid off. On the time of this discovery, FMC carried excellent balances of about $200,000,000.00 and $140,000,000.00 on the Spirit/Mortgage Corp. and Residents/Funding Corp. strains of credit score, respectively.
Upon studying of McCord’s conduct, Spirit/Mortgage Corp. and Residents/Funding Corp. terminated future warehouse lending to FMC, and instituted new notification necessities that required McCord to assign FMC-funded mortgages to Spirit/Mortgage Corp. and Residents/Funding Corp., to make sure the title firms dealing with these mortgages despatched payoffs on to the banks. McCord admitted at yesterday’s plea listening to that he filed the assignments as required, however then triggered the mortgages to be launched on two properties—in Leland and Denver, North Carolina—after gathering the mortgage payoffs.
Spirit/Mortgage Corp. and Residents/Funding Corp.’s refusal to fund new FMC mortgages prompted McCord to hunt out a brand new warehouse lender. In early 2017, McCord started negotiating with CapLOC, LLC, a North Carolina-based mortgage lending enterprise, and supplied to promote FMC’s mortgage lending enterprise in change for fast funding from CapLOC. At yesterday’s plea listening to, McCord admitted that he made a materially false assertion and illustration to CapLOC in the middle of these negotiations, with a view to affect CapLOC’s actions.
Lastly, in 2017, FMC serviced roughly 12,000 loans value a complete of roughly $1,800,000,000.00 for the Federal Nationwide Mortgage Affiliation (“Fannie Mae”). McCord admitted on the plea listening to that he defrauded Fannie Mae by diverting escrow monies supposed to pay householders’ taxes and insurance coverage premiums to cowl FMC’s working bills. McCord additionally admitted that he then laundered the proceeds by inflicting a wire switch from FMC’s working account to a customized dwelling builder, as cost in direction of building of McCord’s dwelling in Colorado.
At sentencing, which is at present scheduled for August 9, 2021, McCord faces as much as 30 years in jail and a fantastic of as much as $1,000,000.00 on every depend of financial institution fraud and false assertion to a monetary establishment. He additionally faces as much as 10 years in jail and a $250,000.00 fantastic on the cash laundering depend. Per the phrases of his plea settlement, the federal government agreed to not advocate at sentencing for a sentence above 104 months. Underneath the plea settlement, McCord might be ordered to pay restitution to the victims of his conduct in quantities to be decided by the court docket on the time of sentencing. McCord should additionally forfeit proceeds of the fraudulent schemes and property concerned within the offenses. Additional, as a part of the plea settlement, the federal government will dismiss at sentencing the remaining counts of the Indictment.
This case is the results of investigations by the Federal Housing Finance Company Workplace of the Inspector Common, Federal Deposit Insurance coverage Company Workplace of Inspector Common, and the Federal Bureau of Investigation. Assistant U.S. Lawyer Julia E. Barry is prosecuting the case.
Reference is made to court docket filings for additional data.