Industry NewsMortgage

FBI says Fannie Mae, Credit Suisse duped by fraudsters

Former owners of N.Y.-based mortgage firm indicted

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Two former owners of a Brooklyn, N.Y.-based mortgage company face conspiracy, wire fraud and bank fraud charges stemming from Olympia Mortgage Corp.'s dealings with Fannie Mae and Credit Suisse First Boston. Leib Pinter, 64, is accused of fraud in connection with the alleged theft of $44 million in proceeds from refinance loans funded by Fannie Mae. Barry Goldstein, 59, allegedly sold nonperforming loans to Credit Suisse First Boston using falsified loan histories, prosecutors said. According to an indictment filed by the United States Attorney for the Eastern District of New York, Olympia originated and serviced mortgage loans owned by Fannie Mae. Some of those loans were refinanced through Olympia, with Fannie Mae wiring money to an Olympia account. Instead of paying off the underlying mortgage loan by remitting the outstanding balance to Fannie Mae, Pinter is accused of pocketing the proceeds. By the time the scheme was discovered, Fannie Mae held nearly $44 millio...