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by CareyBot

The former president of a California mortgage firm accused of raising $30 million from investors to fund his lavish lifestyle and pay off gambling debts has agreed to pay $20 million in restitution and spend up to five years in prison under the terms of a plea agreement with prosecutors. Salvatore Favata, the former president of National Consumer Mortgage LLC in Orange County, Calif., agreed to plead guilty to one count of mail fraud, according to the Securities and Exchange Commission. The Commission said it has settled its own securities fraud case against Favata, in which he neither admitted nor denied charges that he operated "a massive Ponzi scheme," but accepted a permanent ban from associating with broker-dealers. According to the SEC's complaint, Favata solicited investors in f...