NEW YORK, March 19 A former executive at a New
York mortgage lender was sentenced to more than eight years in
prison on Thursday after pleading guilty to defrauding Fannie
Mae FNM.N in a $44 million home refinancing scheme.
Leib Pinter, 64, was also ordered to pay more than $43
million in restitution. Prosecutors say that Pinter's scheme
left Fannie Mae holding about that amount in unpaid principal
of refinanced mortgage loans through his scheme.
The sentence was handed down by U.S. District Judge Sandra
Townes in Brooklyn, the U.S. Attorney's Office for the Eastern
District of New York said in a statement.
A lawyer for Pinter was not immediately available for
Pinter, a former executive of Brooklyn mortgage lender
Olympia Mortgage Corp, pleaded guilty in September 2008 to
conspiracy to commit wire fraud.
His firm originated and serviced home loans owned by Fannie
Mae. Prosecutors said in court papers when the case was filed
last year that when Olympia refinanced a Fannie Mae loan,
Fannie typically wired the money to an Olympia bank account.
Olympia was then required to pay off the underlying
mortgage loan by sending the outstanding balance to Fannie. But
instead, prosecutors said, Pinter misappropriated the proceeds
to pay his company's operating expenses and to enrich himself.
Another former Olympia executive, Barry Goldstein, pleaded
guilty to conspiracy and bank fraud in January, according to
Prosecutors said Goldstein committed fraud in connection
with Olympia's sale of a portfolio of mortgage loans to Credit
Suisse Group AG CSGN.VX affiliate Credit Suisse First Boston
using falsified loan histories. Goldstein is awaiting
(Reporting by Martha Graybow, editing by Gerald E. McCormick)