Michael McGrath, the one-time CEO of U.S. Mortgage/CU National Mortgage, convicted of stealing almost $140 million of credit union funds, will remain free on bail with his sentencing postponed again until Nov. 15.
Sentencing for McGrath, who is facing 20 years in prison, has been delayed at least six times, since he pleaded guilty in June 2009 to charges related to the massive fraud. The latest delay was requested by the U.S. Attorney's office in Newark, N.J., because of a scheduling conflict. (The mortgage company was based in New Jersey.)
McGrath confessed to a scheme by which he sold the mortgages of credit unions he was servicing to Fannie Mae then kept the proceeds, about $138 million of it belonging to his credit union customers.
Prosecutors in the case continue to come up empty-handed in their search for any additional McGrath assets for restitution to the credit union victims. Under his plea deal McGrath agreed to forfeit about $13 million in assets. That means that 28 credit unions are still out about $125 million.
