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.

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 million in unpaid, but refinanced, mortgage loans from Olympia, prosecutors said.

Olympia also sold loans to investors including Credit Suisse, which required Olympia to provide loan histories detailing whether homeowners had made payments on time. Goldstein allegedly instructed Olympia employees to alter delinquent loan histories to make it appear that payments were made in a timely manner, prosecutors said, with Credit Suisse purchasing 12 loans with falsified histories.

Deliberate misrepresentations by unscrupulous mortgage brokers, lenders or appraisers "can trump even determined due diligence," said Mark J. Mershon, assistant director-in-charge of the FBI’s New York Field Division, in a statement. Mershon said the FBI and U.S. Attorney are committing "more resources than ever" to police mortgage lenders.

The case is being prosecuted by assistant United States attorneys Jonathan E. Green and Daniel A. Spector. If convicted of either of the conspiracy to commit wire fraud or wire fraud counts, Pinter faces a prison sentence of up to 30 years, as does Goldstein if convicted of conspiracy to commit bank fraud and bank fraud counts.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×