MANHATTAN (CN) - The president of GuyAmerican Funding Corp. defrauded banks of more than $23 million in home mortgage loans and surrendered to arrest on Thursday, federal prosecutors said. David Ramnauth, 54, of Levittown, faces up to 30 years in prison if convicted of all charges.
Ramnauth, who ran his business out of Jamaica, N.Y., and Queens, was indicted along with eight others, the U.S. Attorney's Office said. He is charged with conspiring to commit bank fraud and wire fraud. Three co-defendants have pleaded guilty in the scheme, which involved straw buyers, equity stripping and flipping properties while taking commissions.