“Abacus made millions of dollars off those fraudulent loans.” “Abacus is a bank, not a community service organization,” Ms. Eight employees, including several loan originators, later pleaded guilty to engaging in fraud by falsifying documents. She said the investigation had grown out of a complaint from a borrower to the local police and had revealed widespread fraud in the bank’s loan department. “This is totally prejudicial and incorrect.” “This is a gross injustice, not only to a small bank, but is casting a shadow on our community, that this community somehow condones or conducts illegal activity. “This entire wrongful prosecution has exhausted a small community bank such as ours,” Mr. Legal bills had drained his family’s resources, he said, costing more than $10 million, and had hamstrung the bank’s business for three years. Vance Jr., had persecuted a community bank with a misguided prosecution. The bank’s founder, Thomas Sung, 79, said the office of the district attorney, Cyrus R. The charges included grand larceny, conspiracy, falsifying business records and residential mortgage fraud. A jury found Abacus Federal Savings Bank and two of its senior officers not guilty of grand larceny and other charges on Thursday after a four-month trial, rejecting the Manhattan district attorney’s attempt to prove that the bank systematically lied for years to the Federal National Mortgage Association about the qualifications of its mortgage applicants.Īfter a court clerk read the 240 counts in the indictment and repeated the words “not guilty” after each one, members of the Sung family, which founded and owns the bank, wept and embraced one another in State Supreme Court in Manhattan.
0 Comments
Leave a Reply. |