FORT LAUDERDALE, Fla. – The former vice president of Coastal States Mortgage Corporation based in Fort Lauderdale pled guilty to conspiracy to commit wire fraud to defraud Fannie Mae and Freddie Mac.
Patrick J. Mansell, 68, of Boca Raton, was accused of misappropriating funds and regularly submitting false financial reports. He is accused of misleading lenders into believing the loans were still performing. Authorities claim this resulted in an $18 million loss to Freddie Mac and Fannie Mae.
Mansell admitted that Coastal failed to remit some of the mortgage payoffs it received and processed from borrowers to Freddie Mac and Fannie Mae.
According to the federal indictment in the Southern District of Florida Coastal submitted false financial reports regularly to conceal the misappropriated was concealed by the regular submission of false financial reports and monthly mortgage.
The Federal National Mortgage Association also filed federal lawsuits against Mansell and Coastal for breach of contract and fraud.
The lawsuit estimated the damages at more than $28 million and said that in many instances Fannie Mae loans were refinanced with another lender without properly reporting it. Mansell used the funds from the payoffs to pay for his luxury BMW, the lawsuit alleges.