Feds Indict Former Mortgage Lender John Reimer For Bank Fraud And Wire Fraud
The United States Department of Justice has indicted former mortgage lender John Reimer. Reimer is accused of one count of bank fraud and one count of mortgage fraud. Each count carries a maximum sentence of 30 years in prison.
The former mortgage lender allegedly participated in a scheme to defraud banks of money intended for individuals seeking home loans.
Acting U.S. Attorney Joon H. Kim said:
As alleged, John Reimer, vice president of a mortgage bank, defrauded several other financial institutions of more than $12 million. Reimer allegedly falsified documents, kept funding for mortgages that never closed. He even acquired funding multiple times for the same loans as part of the scheme.
Reimer was the vice-president and comptroller of the Mortgage Bank. The Department of Justice is accusing him of defrauding several warehouse lenders.
Reimer received approvals based on fraudulent documentation and representations.
The Mortgage Bank was in the business of providing mortgage loans for residential properties. The warehouse lenders advanced sums of money to the Mortgage Bank so that the Mortgage Bank could fund Loans. The Mortgage Bank sold the loan to an investor. Then used the proceeds of the sale to repay the lender.
The Mortgage Bank was required to provide the lender with certain information about the Loan before obtaining an advance. In addition, the notes and mortgages executed by the residential mortgagors were provided as collateral for the advances. REIMER was responsible for providing the Warehouse Banks with the information and documents necessary to obtain the Warehouse Advances.
The Unsealed Indictment of The Former Mortgage Lender
The DOJ alleges Reimer used fraudulent documents to entice lenders to wire the Mortgage Company at least over $12 million from November 2008 through January 2009.
Reimer also “double-pledged” residential properties by obtaining multiple warehouse lines from multiple warehouse lenders to fund the same Loan.
Reimer also allegedly misrepresented the closing dates of the loans to the warehouse lenders. In some cases, the loans never closed. Yet, the Mortgage Bank nevertheless retained the advances given to them for those particular loans. In other cases, the loans did close, but the Mortgage Bank used the advances to repay other warehouse advances.