SoCal Man Charged With $5M Mortgage Scam

     PHILADELPHIA (CN) – Federal prosecutors accused a 64-year-old man from Rancho Mirage, Calif., of using his mortgage office to defraud a bank of $5.3 million.
     The United States filed a one-count information against Steven Pitchersky. It claims he ran his business, Nationwide Mortgage Concepts, to originate and refinance mortgage in more than 40 states, marketing it by direct mail throughout the country.
     Pitchersky also ran Hanover Settlement, Inc., a title company based in Hanover, Pa.
     Only Pitchersky is named as a defendant.
     The federal prosecutor claims that Pitchersky defraud the lender, Ally Bank of $5.3 million through a “warehouse line of credit.”
     Detroit-based Ally Bank, formerly known as GMAC Bank, received $16 billion in bailout money from the Troubled Asset Relief Program, the prosecutor says. Pitchersky is accused of defrauding the lenders through the warehouse line of credit he got through ally, using the TARP funds.
     If convicted, he faces up to 20 years in prison and a fine of $250,000.

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