Bayview Principal Gordon Charged with Fraud

Steven Gordon, a former principal at Bayview Financial of Miami, has been indicted in connection with an alleged scheme to inflate the value of mortgage loans and increase his commissions. According to R. Alexander Acosta, U.S. attorney for the Southern District of Florida, Mr. Gordon was a principal at Bayview Financial, a finance company that buys portfolios of loans from lending institutions. Bayview pools certain loans into newly formed business entities, called "special purpose entities," and then issues securities backed by the loans to the investing public. Mr. Gordon held the title of director of residential acquisitions. One of his primary duties was to negotiate the purchase of thousands of loans for Bayview Financial's mortgage securitization program. Mr. Gordon's incentive compensation was based on his ability to buy those loans at a low cost. He allegedly defrauded Bayview Financial by altering credit information affecting the value of more than 2,800 loans he acquired on behalf of the firm. In a statement the company said, "After discovery of these actions, Mr. Gordon's employment was terminated," adding that "No investor suffered any loss as a result of this matter." Mr. Gordon could not be reached for comment.