May 31, 2016
First Mortgage Corporation, Clement Ziroli Sr., Clement Ziroli Jr., Pac W. Dong, Ronald T. Vargas, Scott Lehrer, Edward Joseph Sanders
SANCTION AMOUNT: $12,700,000
Defendants: First Mortgage Corporation
Clement Ziroli Sr., Clement Ziroli Jr., Pac W. Dong, Ronald T. Vargas, Scott Lehrer, Edward Joseph Sanders
Settlement of charges against a California-based mortgage company and its six most senior executives, that they orchestrated a scheme to defraud investors in the sale of government-guaranteed RMBS. Allegedly, they repurchased loans from pools at prices applicable to delinquent loans that they themselves rendered technically delinquent, then resold them as current for an immediate, nearly risk-free profit. Meanwhile, investors were wrongly deprived of the interest payments on the repurchased loans.
- Key Docs
- Official SEC press release