Mr Cooper Group Inc (COOP)

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If you check out Long Beach Mortgage Co they have a history of fraud. How Wamu management didn't know about it but their risk officers did is stunning.

Long Beach Mtg Loan Coordinator Pleads Guilty
John Ngo, 27, Dublin, California, pled guilty to lying under oath before a federal Grand Jury in connection with an on-going mortgage fraud investigation.

According to Assistant United States Attorneys Benjamin B. Wagner and Courtney J. Linn, who are prosecuting the case, from approximately September 2001 through May 2006, Ngo worked as a Senior Loan Coordinator at Long Beach Mortgage, a subprime lender of residential real property that is now an operational subsidiary of Washington Mutual, F.A. In his capacity as Senior Loan Coordinator, Ngo was responsible for, among other things, validating and verifying loan application information (including employment information) submitted by or on behalf of home loan applicants.

In September 2007, Ngo testified under oath before a Grand Jury investigating a wide-ranging mortgage fraud scheme in the San Joaquin County, California area. He was asked whether a particular mortgage broker who referred loan applications to Long Beach Mortgage during the time that Ngo worked there had given Ngo any money. Ngo falsely testified that the broker had not given him any money. In fact, records subsequently obtained from Bank of America show that between July 2003 and March 2007, defendant Ngo received approximately $100,000 in checks and bank transfers from accounts controlled by the mortgage broker. Ngo admitted that most of the payments he received from the broker were payments made for ensuring that fraudulent loan applications referred to by the mortgage broker’s firm were processed and funded.

As part of his plea, Ngo also admitted that he also received payments from certain Long Beach Mortgage sales representatives in order to push loan applications through the funding process. He further admitted that he knew that many of these loan applications were fraudulent, and that he and others took steps to “fix” the loan applications by creating false documents or adding false information to the applications or the loan file. As part of his plea agreement, defendant Ngo has agreed to cooperate with the government’s ongoing investigation and prosecution of mortgage fraud involving residential home loans in the area of San Joaquin County.

Sentencing is set for April 7, 2008 at 8:30 a.m. before US District Court Judge William B. Shubb.

http://www.mortgagefraudblog.com/index.php/weblog/permalink/long_beach_mtg_loan_coordinator_pleads_guilty/


In connection with this ongoing investigation, MANPREET SINGH, JOSE SERRANO, JOHN NGO, and IFTIKHAR AHMAD have pleaded guilty to perjury, mail fraud, and/or money laundering charges.

“This indictment reflects the commitment of this office, the FBI and the IRS-CI to follow the facts to wherever they lead us,” said U.S. Attorney Scott. “We have now convicted several individuals who participated at different levels of the loan origination process in mortgage fraud transactions centered in the Stockton, California area. The indictment returned today charges an individual who allegedly worked inside a major subprime lender and who received significant commissions and other compensation in his capacity as a sales representative.”

http://www.justice.gov/usao/cae/press_releases/docs/2008/06-12-08BlanfordIndictment.pdf