Former mortgage company president pleads guilty to fraud charges

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OKLAHOMA CITY (KFOR) – A former president of an Oklahoma City-based mortgage company has pleaded guilty to defrauding two local banks, Fannie Mae, and others over the past three years.

Officials say Ronald J. McCord, 70, was the former president of First Mortgage Company, an Oklahoma City-based mortgage and loan servicing company.

According to the federal indictment, McCord was charged with defrauding Spirit Bank and Citizens State Bank.

Officials say McCord had sold more than $14 million in Spirit/Mortgage Cop. and Citizens/Funding Corp. lent “out of trust” when it failed to repay customer loans after they were refinanced or otherwise repaid.

In fact, the indictment alleges that McCord would “double” certain loans by obtaining funds from both financial institutions for the same loan.

The indictment also alleges that McCord defrauded Fannie Mae by embezzling escrow funds intended to pay the owners’ taxes and insurance to cover FMC’s operating expenses. As a result, Oklahoma City homeowners failed to pay their taxes.

“The indictment further alleges that McCord laundered the stolen receiver’s money by using the funds to write checks to himself, pay more than half the purchase price of his son’s $900,000 home. in Oklahoma City and build a custom vacation home in Colorado,” a statement from the United States Attorney’s Office for the Western District of Oklahoma read.

On Monday, McCord pleaded guilty to five counts, including bank fraud, money laundering and making false statements to a financial institution.

McCord faces up to 30 years in prison and a fine of up to $1 million for each bank fraud and misrepresentation to a financial institution. He also faces up to 10 years in prison and a $250,000 fine for money laundering.

As part of the plea agreement, the government agreed not to plead for a sentence longer than 104 months. Under the agreement, McCord will also be ordered to compensate the victims in an amount to be determined by the court.

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