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. …