Earl Gross, former president and chief executive officer of U.S. Mortgage pleaded guilty Wednesday for his role in a scheme to defraud Wells Fargo (WFC) out of more than $8 million, according to the U.S. Department of Justice.
Gross pleased guilty to one count of bank fraud and faces a maximum penalty of 30 years in prison when he sentenced on Sept. 19.
According to plea documents, Wells Fargo contracted with U.S. Mortgage to service pools of residential mortgages loans held by investors in mortgage-backed securities.
Under the agreement, Gross and the mortgage servicing company were obligated to collect from the borrowers their monthly payments that the borrowers made toward their mortgage obligations and forward these proceeds to the mega bank, the release explained.
