Falmouth Man Indicted on Federal Charges in Connection With Alleged Mortgage Fraud

U.S. Attorney Carmen Ortiz responds to questions from reporters during a news conference at the federal courthouse, Thursday, June 9, 2016, in Boston. Law enforcement officials say more than 60 alleged gang members from Boston and other cities in eastern Massachusetts have been charged with drug, weapons and racketeering charges. (AP Photo/Steven Senne)

U.S. Attorney Carmen Ortiz  (AP Photo/Steven Senne)

BOSTON – The president and founder of a former Falmouth mortgage company has been charged with defrauding the Government National Mortgage Association out of nearly $3 million.

Robert Pena, 67, was charged Thursday in U.S. District Court in Boston.

Pena, the president and founder of the now-defunct mortgage company, Mortgage Security, Inc. (MSI), was indicted on conspiracy and wire fraud charges.

He was arrested today and will appear in before U.S. District Court Magistrate Judge Marianne B. Bowler this afternoon.

U.S Attorney Carmen Ortiz said the charges arise out of Pena’s alleged scheme to defraud Ginnie Mae, the government-run corporation which makes housing more affordable by injecting capital into the U.S. housing market.

According to the U.S Attorney, Ginnie Mae guarantees the timely payment of principal and interest to investors in bonds backed by government-sponsored mortgage loans.

Pena’s company was responsible for servicing the loans in the pools it created, including collecting principal and interest payments, and placing those funds into accounts held in trust by Ginnie Mae, which would ultimately pass them along to investors.

According to the indictment, beginning in 2011, Pena began diverting money that borrowers were sending to MSI.

Specifically, he is alleged to have deposited large-dollar, loan-payoff checks into secret accounts unknown to Ginnie Mae and then using those funds for his own personal and business uses.

In total, prosecutors allege that Pena took nearly $3 million, which Ginnie Mae then had to pay the investors whose investments it had guaranteed.

Pena also attempted to cover up his scheme by providing false reports to Ginnie Mae about the status of the loans MSI was servicing.

The charge of conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss.

The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss.

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