Federal Judge Could Sentence Former Live Well CEO Michael Hild To 33 Years For $200 Million Bond Fraud Scheme

Federal prosecutors have recommended former Live Well CEO receive 15 years in prison. However, the federal court could send him to prison for up to 33 years. A federal judge found him guilty of orchestrating a $200 million bond fraud scheme in 2021.

However, Michael Hild’s attorneys have asked the court for probation.

Hild was the founder and former CEO of reverse mortgage lender Live Well Financial. A federal judge convicted in April 2021 on securities fraud and wire fraud. In addition, the court found him guilty of bank fraud. Federal prosecutors successfully convicted Hild for operating a $200 million fraud scheme to inflate the value of Live Well’s bond portfolio. Hild wanted to persuade securities dealers and a bank to loan more money to Live Well.

Live Well originated, serviced, and securitized government-guaranteed reverse mortgages. Creditors forced Live Well into Chapter 7 involuntary bankruptcy in July 2019 because of mounting debts.

Hild’s scheme allowed Live Well to grow its bond portfolio exponentially. Live Well started with 20 bonds with a stated value of $50 million in 2014. In 2016, the portfolio grew to approximately 50 bonds with a stated value over $500 million. However, in May 2019, Live Well wrote down the value of its portfolio by over $200 million.

Federal authorities accused Hild of orchestrating the scheme in September 2019. Authorities also accused Hild of repeatedly lying to and misleading the company’s lenders and outside auditors.

Federal prosecutors recommended Hild be sentenced to 15 years in prison.

Yet, Hild’s attorneys are seeking a much lighter sentence for their client. They are asking the court for 37-46 months of probation.

However, prosecutors also say Hild perjured himself extensively during the trial. As a result, they enhanced their sentencing recommendations.

Hild’s sentencing is scheduled to be held on Friday.

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