Executive Faces Fraud Allegations Linked to Loan Resales

David Findel, the president and CEO of Morganville, N.J.-based Worldwide Financial Resources, is facing charges in an alleged $11 million mortgage-reselling fraud scheme. According to the Newark, N.J. office of the FBI, Mr. Findel, from Colts Neck, N.J., surrendered himself to the FBI and made his initial appearance before Judge Mark Falk, who released Mr. Findel on a $1 million secured bond. Originally started as a financial planning company, Mr. Findel expanded Worldwide Financial Resources to include home mortgage origination and banking services. This allowed WFR to both initiate and fund mortgages for its clients by borrowing money from a warehouse lender. To repay the lender, WFR would resell each mortgage it originated in the secondary mortgage market. When WFR experienced a liquidity crisis in January 2008, Mr. Findel allegedly conducted a scheme to defraud mortgage banks by reselling the same mortgages to multiple financial institutions. Once WFR sold a mortgage, Mr. Findel would allegedly create a second set of fraudulent mortgage documents and resell the same mortgage to a different secondary market lender. The complaint alleges that Mr. Findel, who was unavailable for comment, obtained more than $11 million from secondary market lenders through this scheme.