Colts Neck, NJ – Feds Charge Philanthropist With $11 Million Mortgage Scam

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    Colts Neck NJ – A Colts Neck man has been charged with wire fraud, after federal authorities say he devised a mortgage fraud scam that netted his company more than $11 million in illegal profits.

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    David Findel, 44, the president and CEO of Worldwide Financial Resources (WFR), based on Route 9 north in the Morganville section of Marlboro, surrendered to federal authorities on Tuesday.

    The Colts Neck man gained attention last year when he paid $400,000 for the rights to buy two 50-yard line seats at Jets games when a new stadium at the Meadowlands opens next year, according to the NY Post.

    That was just part of the lavish lifestyle he maintained, authorities said. He had a multi-million dollar home and a fleet of vehicles, according to a criminal complaint that accuses him of submitting false documents to financial institutions as part of a mortgage re-selling scheme.

    WFR opened in 1988 as a financial planning company, but by 1993, had been expanded by Findel to offer a variety of home mortgage services, including mortgage origination and banking, according to the criminal complaint filed against him.

    That expansion allowed the company to initiate and fund mortgages for clients by borrowing money from a warehouse lender, according to the FBI.

    To repay the lender, WFR would resell, at a profit, the home mortgage in the secondary mortgage market, federal authorities said.

    The company made a profit because it earned fees for both the origination and resale of the mortgage, and WFR originated, financed and re-sold about $90 million worth of mortgages each month, according to the complaint.

    But the company’s profits were largely dependent on the volume of new loans originated each month, and as a result of the housing crisis, WFR had its own liquidity crisis in January 2008, according to the complaint and the FBI.

    That’s when the scheme began, federal authorities said.

    Even though WFR relinquished all financial interest in a mortgage once it was sold, Findel created a set of fake mortgage documents and using that second set of documents, such as loan applications, promissory notes, closing sheets, and settlement forms, he resold the mortgage a second time, authorities said.

    Funds were wired through an escrow company to WFR’s account, and Findel used that money to pay corporate and personal expenses, according to federal authorities.

    “This is a man who had it all,” Weysan Dun, the Special Agent in Charge of the Newark FBI office said in a prepared statement. “Mr. Findel made this company what it was. He had the skill and savvy for this business. But what I find most remarkable is that despite his wealth and success, it simply wasn’t enough. Mr. Findel let greed beat him.”

    After an initial appearance Tuesday afternoon before United States Magistrate Judge Mark Falk, Findel was released on $1 million secured bond.

    If convicted, he faces up to 20 years in prison and $250,000 in fines.

    Editors note: The above is an allegation, the person is not guilty until proven otherwise by a court of law.


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    10 Comments
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    Anonymous
    Anonymous
    14 years ago

    Things are getting worse by the minute.

    s
    s
    14 years ago

    it looks like crime pays in America. You see here is a guy making 11m and the fines are only $250,000 meaning he has left about 10m .

    lawyer
    lawyer
    14 years ago

    The $250,000 is over and above restitution, probably. So they will wipe him out if they can.

    Think Tank
    Think Tank
    14 years ago

    The story doesn’t ad up. If a guy is doing 90 million in originations, then why would a 400K purchase put up red flags? Also I can’t believe that smart guy like that would think he’ll gat away with selling the same mortgage twice. Poor media coverage.

    Anonymous
    Anonymous
    14 years ago

    With his good looks he could have made 11 million per movie. he picked the wrong field.

    Bo
    Bo
    14 years ago

    Did anyone that worked for the company turn themselves in as well or did David sacrifice himself for there sake?

    Anonymous
    Anonymous
    14 years ago

    He’s no different than the rest of us he plays in a bigger arena

    Anonymous
    Anonymous
    14 years ago

    How about everyone who was victimized by this man’s actions? The consumers who now see their credit ratings suffer, who have to deal with the aftermath of double fundings? Anonymous…he is different from most of us, he doesn’t have a heart nor does he care about anyone in his path.