Brooklyn, NY – A former executive at a New York mortgage lender was sentenced to more than eight years in prison on Thursday after pleading guilty to defrauding Fannie Mae (FNM.N) in a $44 million home refinancing scheme.
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LB was also ordered to pay more than $43 million in restitution. Prosecutors say that LB’s scheme left Fannie Mae holding about that amount in unpaid principal of refinanced mortgage loans through his scheme.
The sentence was handed down by U.S. District Judge Sandra Townes in Brooklyn, the U.S. Attorney’s Office for the Eastern District of New York said in a statement.
A lawyer for LB was not immediately available for comment.
LB, a former executive of Brooklyn mortgage lender Olympia Mortgage Corp, pleaded guilty in September 2008 to conspiracy to commit wire fraud.
His firm originated and serviced home loans owned by Fannie Mae. Prosecutors said in court papers when the case was filed last year that when Olympia refinanced a Fannie Mae loan, Fannie typically wired the money to an Olympia bank account.
Olympia was then required to pay off the underlying mortgage loan by sending the outstanding balance to Fannie. But instead, prosecutors said, LB misappropriated the proceeds to pay his company’s operating expenses and to enrich himself.
Another former Olympia executive, BG, pleaded guilty to conspiracy and bank fraud in January, according to court records.
Prosecutors said BG committed fraud in connection with Olympia’s sale of a portfolio of mortgage loans to Credit Suisse Group AG affiliate Credit Suisse First Boston using falsified loan histories. BG is awaiting sentencing.
Reb Leibel,
Tzaar lee alecha. You were such a dear friend and role model. My tears are flowing freely for you. May Hashem ease your pain, and your family’s pain, and may we be zoche to see you again in good health.
With a broken heart,
A Dear Friend.
He’s going back home, Much nachas to Yeshiva and Camp Bnei Torah
These and many more like them are part of the cause of the economic disaster were are in
This guy’s chillul hashem is worse than Madoff because he looks like a frum Jew.
he is a choshuve askan. nebech he fell into the taiva of money. he has done many good things 4 klal yisroel.
tzaar lee alecha?
not sure if you understand that he screwed hundreds of innocent frum mishpachos by taking out tens of milions of dollars in mortgages on their homes without them knowing.
let him rot with madoff and the rest of the dogs
a Fine and ehrliche person with a beautiful family.may Hashem watch over him and he may he. Be zocheh to simcha until 120
Oi Reb leib my heart goes out for you. I will say tehilim maybee the gezar din could still be overturned
You Do The Crime You Gotta Do The Time
He stole money from me he still owes me 4k , he knew wat he was doing its not his first time in jail was always ready to hurt ppl eg, Rabbi slifkin
Had rachmonis on this guy, until I Googled his name, but as a yid I still have rachmonis on him….No wonder he got so many years, its not his first time in jail.
rabbi pinter is a true kidush hashem
It is mind-boggling that some people are expressing sympathy for such a person. Such sins are very severe, such a person is in great trouble from Heaven, never mind here on earth. He should be excommunicated. A clear message must be sent that this is not tolerated or winked at. Throw the book at such people! They blacken the name of Torah and Judaism. Spit them out!
Enough already! Every time someone who’s frum is convicted of a crime, we have the same debates on both sides. Some people talk about how wonderful a person he is and how it’s all a conspiracy, while the other side talks about what a Hillul Hashem it is that a frum person is guilty of a crime. Why do we this to ourselves? No one benefits from these Vikuchim. Why don’t we call it what it is, and how the rest of the world perceives any criminal in general – there but for the grace of Hashem go all of us. Every person has had a moment and perhaps many moments when they were enticed by the possibility of enriching themselves in a way that was less than legal, and with Hashem’s help, we overcame it. But if the enticements were too great, and then if we were unfortunate enough to get caught, we would be the one in trouble. Let’s not kid ourselves, prison is not so uncommon – 2 million Americans are currently incarcerated. Some of the people in prison are genuinely evil, but most couldn’t overcome their proclivities or the chance to make a quick “profit” (or their drug habits) and took actions that resulted in their current predicament. The person is going to prison for his bad choices, bad luck, circumstances that led to this…it happens. Let us pray for the neshomas that are being put in Golus and leave the vikuchim to things that we can change.
such foolish statements here he was frum what is frumkait if not honesty the whole torah is based on honesty its a big joke this frumkait claim biggest hoax on this planet haha frumkait worthless if youre dishonest and also the biggest hillel hashem that you can imagine
Emesdige Ben Torah. Real fine ehrliche person,very close to all the Litveshe Roshei Yeshivos.
I know this man many years. Most of those writing these comments obviously don’t.
So unless you are familiar with his history and ethics (or lack thereof) don’t talk and write. You seem so foolish!
By the way, does anyone know when he starts serving his time?
Maybe we need to start focusing on adults at risk.
Chazal: Often YOU are being judged in Bais Din Shel Maaleh and they allow YOU to bring forth YOUR own verdict and punishment through presenting YOU with a scenario on this world in time through a story or event YOU experience about others. They then listen as YOU pass judgement or opinions on others. Though your realy are sealing YOUR own fate!
Alot of people have been hurt by the dishonesy of this man.
How will it help them that he serves time in prison? Does it resurrect their money, their sleepless nights and their health?
To all who have lost their money, I advise you to focus on your future, forget about the past, count your blessings and thank Hashem for what he didn’t take from you.
a real mench a bal tsedokah full of chesed all his life beautiful family
!st it was the lunches,then the mortgages,a ganev is a ganev who does not believe in the Torah which says LO SIGNOVU.” an emese toradicke yid” some fool from Leechwood wrote.U have no Torah mind. Oh its sad alright. I wish for him to be released A/O and have all his assets liened,and pay back every penny.A great rachmonus on such a sick person,and his wonderfull mishpacha.He’s so simple minded,its freightning.
I mean, come on, clearly Leib’s moral compass is, shall we say, off? I’m not saying that the guy hasn’t done chesed, given tzedaka, etc… I am sure he has, but really now, clearly there is a history and a pattern of criminal activity. The guy’s got issues.
The Madoff comparison is interesting. First of all, the Madoff scheme did not involve 50 Billion. Chill out. That number by all accounts of those in the know is not real. It may be the number on paper that disappeared, but it was never there in the first place. So forget the comparisons between Madoff and Pinter on that level, that’s ridiculous.
Pinter held himself out as classic litvish. Madoff openly ate pig wrapped in ham slathered with lobster. So in my mind, yes, Pinter should be held to a higher standard. I am not the one to judge whose Chillul Hashem is worse, but the expectation for Pinter should be higher.
#22 ,
it’s more like 3 million. I doubt that they contain a “proportionate amount of Jews and even less so “frum Jews” as opposed to others. There are bad examples in every group and until you have first hand knowledge, it’s best to keep your mouth shut.
You should all go to a lecture by Ben Brafman, Esq. He has been lecturing about ethics in the frum community for years. Why is it that so many do not listen. Money, money, money!!!!!
To all those with sympathy for him and his family – I have one question, will he and his familu sell their houses, cars, jewelry, assets, etc. to return and repay ALL the fraudulent and illegally gained money that they have and continue to enjoy?
A gonef is a gonef. He pleaded guilt because the Feds have massive paper trails that he could not deny. Nonsense about erhlich, he’s a gonef. Whatever happened to real honesty and erlickeit?
if anyone didn’t know Fannie May money is everyone’s money. He took from all of us. We as hamisha yidden have to get this anti goverment mentenality out of owu systme. Does anyone know how to make money legit?