Three executives from Vanguard Funding in Central Islip, N.Y., have been brought up on fraud charges by the U.S. Attorney's Office in the Eastern District of New York.

The three mortgage lending executives face charges of conspiracy to commit wire and bank fraud, according to a complaint unsealed on Aug. 22.

President of Sales Edward Bohm, Chief Operating Officer Matthew Voss and Chief Financial Officer Edward Sypher Jr. allegedly misused more than $8.9 million in warehouse funding for loans. Sypher's attorney has been engaged in plea negotiations related to the case, according to court documents filed on Sept. 13.

"As alleged, the defendants — executives of a mortgage lender — defrauded banks into lending them money by stating that the money would fund new mortgages or refinance existing ones," said Acting Attorney General Bridget M. Rohde in a press release.

The executives allegedly misused the warehouse lending funds between August 2016 and March of this year by using the money to pay for personal expenses and compensation as well as pay off previous loans they obtained on false pretenses, according to the complaint.

Bohm also allegedly was part of a recorded conversation in which he expressed confidence there would not be criminal liability because the actions did not target "the public," the complaint alleged.

"We will continue to address dishonesty in the mortgage industry whether the victims are financial institutions, investors, or homeowners, as it ultimately hurts all of us as a community," said Rohde.

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