Mortgage Company President Accused Of Defrauding Warehouse Lender

Posted by Orb Staff on August 03, 2009 No Comments
Categories : Residential Mortgage

ttorney Donald W. Washington, of the Western District of Louisiana, has [link=http://neworleans.fbi.gov/dojpressrel/2009/no073109.htm][u]announced[/u][/link] the unsealing of a federal indictment and the arrest of First Fidelity Mortgage Inc. President William Everett Nichols on federal charges involving bank fraud. On July 23, a two-count indictment was returned by the Western District of Louisiana Federal Grand Jury charging Nichols with one count of conspiracy to commit bank fraud and one count of bank fraud. The indictment alleges that Nichols, also the sole shareholder of First Fidelity Mortgage, knowingly and willfully conspired to devise a scheme to defraud warehouse lender Sabine State Bank and obtain money to which Nichols was not entitled. According to the indictment, Nichols and others forged borrowers' and notaries' signatures of borrowers and would then deliver them to Sabine State Bank as collateral in order to cause the bank to deposit money into an account of First Fidelity Mortgage, which Nichols controlled. If convicted, he faces a maximum penalty of 30 years in prison, a fine of $1 million, or both. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Alexander Van Hook. SOURCE: [link=http://www.fbi.gov]FBI

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