Gary Klopp of Nottingham, Md., was ordered to pay more than $525,000 and temporarily barred from working in the mortgage industry by a U.S. District Court judge for violating a previous court order, according to Maryland Attorney General Brian Frosh.
The order stems from a 2015 settlement resolving allegations by the attorney general's consumer protection divisions that Klopp had participated in an illegal kickback scheme with the now defunct title company Genuine Title.
Klopp had been charged with taking hundreds of thousands of dollars for referring mortgage clients to the title company. Klopp, who was a loan officer, refused to settle the matter with the attorney general's office in April 2015. But the case was resolved with a court order that November that prohibited Klopp from engaging in the mortgage business other than as a personnel or human resources manager and required Klopp to disclose the order on the Nationwide Mortgage Licensing System.
Klopp was found in violation of the order last August for managing, owning and controlling two branches of an Oklahoma bank that brokered mortgages. He also violated the reporting requirement.
The latest order followed a hearing to determine sanctions. In addition to paying the Consumer Protection Division and the Consumer Financial Protection Bureau $526,796.36 in illegal earnings, he must report the sanctions and is barred from the mortgage industry for two more years.
A lawyer for Klopp did not respond to a request for comment.
Tribune Content Agency