On December 14, 2017, John Reimer, the vice president and comptroller of a mortgage lending institution, was charged with bank fraud and wire fraud for his alleged participation in a scheme to defraud several financial institutions.  Then-Acting U.S. Attorney Joon H. Kim announced the unsealing of Reimer’s indictment and said that Reimer allegedly “defrauded several other financial institutions of more than $12 million, falsified documents, kept funding for mortgages that never closed, and even acquired funding multiple times for the same loans as part of the scheme.”  According to the indictment, Reimer allegedly provided false documentation and made fraudulent representations to warehouse lenders in order to provide funds to Reimer’s mortgage bank, seemingly to fund mortgage loans for residential properties.  Further, the indictment alleges that Reimer’s fraudulent scheme misled the warehouse lenders into believing that the loans they made to Reimer’s bank were “fully collateralized,” when in reality, Reimer “double-pledged” residential properties to get more than one warehouse lender to advance funding for the same mortgage.  Reimer is charged with one count of bank fraud and one count of wire fraud.  Each count carries a maximum sentence of 30 years.  United States v. Reimer, 17-cr-728 (S.D.N.Y.)

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