David Findel, the former CEO of Worldwide Financial Resources, has been sentenced to 63 months in prison for leading an $11 million fraudulent loan scheme.
The sentencing in Trenton, N.J., Federal Court followed Findel's guilty plea that charged him with wire fraud.
According to court documents, the Morganville, N.J.-based residential mortgage origination firm would resell mortgage loans to another financial institution in the secondary market after working with and qualifying borrowers for a home mortgage.
Findel admitted that he prepared and sold fake mortgage loans from 2008 through September 2009. After selling the fraudulent loans to a third-party lender, Findel created a second set of fake loan documents for the same property and sold these too even though the actual mortgage loan for that property was already bought.
Findel used the $11 million that he received from this scheme to maintain his multimillion-dollar home in Colts Neck, N.J., for travel purposes and exclusive seating at state professional sports arena, court documents said.
Besides the prison term, Findel has to pay approximately $12 million in restitution.
In a separate case, Findel also recently pleaded guilty to bankruptcy fraud for concealing assets from the U.S. trustee and creditors. He is scheduled for sentencing on this count on Nov. 14.
