U.S. Attorney for the Southern District of Florida Wilfredo Ferrer and Inspector General of the Federal Housing Finance Agency Office of Inspector General Steve Linick announced the filing of a federal information charging Patrick Mansell, vice president of Coastal States Mortgage Corporation, with conspiracy to commit wire fraud to defraud government sponsored entities, Fannie Mae and Freddie Mac.
In the Southern District of Florida from April 2007 to February 2012, Coastal was a licensed mortgage brokerage, with its primary business focused on the selling and servicing of mortgage loans for Freddie and Fannie, according to court records.
Coastal allegedly processed payments and payoffs received from borrowers on behalf of the entities, according to the contractual agreements entered into between them.
The information claims that Coastal also allegedly failed to remit some of the mortgage loan payoffs that it received from borrowers to Fannie and Freddie, causing the entities to take a loss.
Through an Internet portal, this misappropriation was kept secret by the regular submission of false financial reports by Costal, to Freddie and Fannie.
If the defendant is convicted, he will face a statutory maximum penalty of five years’ incarceration, followed by a three-year period of supervised release, plus a fine of up to $250,000 and restitution.
Ferrer commended the investigative efforts of the Federal Housing Finance Agency Office of the Inspector General. Assistant U.S. Attorney Thomas P. Lanigan is prosecuting the case.
An information is only an accusation.