Indictment: New York Loan Broker Swindled Warehouse Lenders

By Bergquist, Erick | American Banker, August 20, 2001 | Go to article overview

Indictment: New York Loan Broker Swindled Warehouse Lenders


Bergquist, Erick, American Banker


A New York mortgage banker was indicted this month, after a 17-month investigation, on charges of pocketing millions of dollars from warehouse lenders.

Angela Daidone-Supthen, the president of Morning Star Mortgage Bankers Inc. of Farmingdale on Long Island, was charged with two counts of wire fraud and one count of criminal forfeiture in the amount of $2.5 million.

The New York State Banking Department said Ms. Daidone-Supthen double-sold loans to several warehouse lenders that had been providing her company with lines of credit to fund mortgages, and that she gave one lender misleading statements about her company's financial condition.

In essence, she is accused of routinely using one loan application to get money from two warehouse lenders and then stealing the money from one of them.

The warehouse lenders include Provident Bank of Cincinnati, Regents Funding in Atlanta, and Impac Warehouse Lending Group of Newport Beach, Calif., according to the indictment.

Millie Freel-Mackin, the department's director of mortgage banking examinations, said she first learned of the matter on the evening of April 13, 2000. That, she said, is when Bruce Brady, the Federal Bureau of Investigation's special agent in charge of white-collar crime, told her that his agency had been investigating Ms. Daidone-Supthen and had frozen Morning Star's accounts.

The Banking Department quickly suspended, but did not revoke, the company's license and fined Ms. Daidone-Supthen $25,000. The suspension was shortly lifted, but a series of investigations and regulatory proceedings, with the help of the U.S. Attorney's Office for the Eastern District of New York, followed.

These led to the revocation of Ms. Daidone-Supthen's license last month and the Aug. 9 indictment, Banking Department officials said.

On June 30, 2000, the department said, it agreed to restore the license if she would provide proof that she had the $250,000 necessary to operate as a mortgage banker in the state, and if she obtained a $1 million warehouse line of credit to fund the loans in her pipeline.

The next month, Ms. Freel-Mackin said, Ms. Daidone-Supthen provided a financial statement claiming that on June 30, Morning Star's account at a GreenPoint Bank branch in Massapequa, N. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Indictment: New York Loan Broker Swindled Warehouse Lenders
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.