Sentencing was delayed Monday until Oct. 24 for a Los Angeles man who used his job in a bank to help a co-defendant con churches into participating in a $4.2 million mortgage fraud scheme.
Paul Ryan, 48, pleaded guilty in 2014 to one count of receiving bribes and rewards as an employee of Broadway Federal Bank, according to the U.S. Attorney’s Office. He faces up to 30 years in federal prison, and has agreed to pay restitution of nearly $354,000 to Broadway Federal, court papers show.
In February, co-defendant Chester Peggese, 59, was handed a year behind bars and five years of probation for his part in the scheme.
Peggese, also from Los Angeles, admitted telling local churches that he was a consultant who could assist in obtaining mortgage loans to purchase property or in obtaining loans to refinance existing mortgages from Broadway Federal.
Between 2007 and 2009, Peggese met with church representatives and obtained financial information required as part of loan applications. Co- conspirators altered the financial information provided to make it appear as if the churches were more financially sound than they were.
Based upon the false statements, Broadway Federal issued mortgages and Peggese received payment out of escrow on the loans, kicking back a portion to Ryan, according to court documents.
Peggese was ordered to pay restitution of $4.2 million to Broadway Federal and $38,609 to the Internal Revenue Service, prosecutors said.
—City News Service