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Mug Shot Monday – Wachovia Banker Gets 41 Months for Bribes from Loan Brokers

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March 17, 2014

By Bob Coleman
Editor, Coleman Report

gavel031714Well, Daniel Mumbower did other things too. Like providing false verification of deposits for mortgage brokers. That earned him $5,000 in cash.

And he approved $765,000 in fraudulent lines of credit that all defaulted. That earned him several thousands of dollars from commercial loan brokers.

But his main source of kickbacks came from approving $3 million in lines of credit.

Says the FBI, “Mumbower realized that the applications Cathie and Aouad brought him contained false income and employment information and were supported by false documentation, such as false tax returns, but he processed the applications anyway. Mumbower earned a commission from Wachovia Bank for each loan that closed. Mumbower paid Cathie and Aouad a commission out of the proceeds of the loan, which was against bank policy, and Cathie paid Mumbower a cash kickback of approximately $200 per approved loan. Aouad, also, paid Mumbower kickbacks totaling approximately $10,000. The defendant processed a regular, weekly stream of fraudulent loan applications brought to him by Cathie and Aouad. Most applications were for lines of credit totaling between $50,000 and $100,000.”

In addition to 41 months in jail, U.S. District Court Judge C. Darnell Jones, II, also ordered three years of supervised release, a $300 special assessment, restitution of $2,718,758, and forfeiture of $2,516,317.

Mumbower must surrender to the Bureau of Prisons on May 14, 2014.

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