OKLAHOMA CITY (KFOR) – A former president of an Oklahoma City-based mortgage company has pleaded guilty to defrauding two locally-based banks, Fannie Mae, and others over the course of three years.
Officials say 70-year-old Ronald J. McCord was the former president of First Mortgage Company, an Oklahoma City-based mortgage lending and loan servicing company.
According to the federal indictment, McCord was accused of defrauding Spirit Bank and Citizens State Bank.
Officials say McCord had sold more than $14 million in Spirit/Mortgage Cop. and Citizens/Funding Corp. loans ‘out of trust” when he failed to repay the customers’ loans after they were refinanced or otherwise paid off.
In fact, the indictment alleges that McCord would “double fund” some loans by obtaining funds from both financial institutions for the same loan.
The indictment also claims that McCord defrauded Fannie Mae by diverting escrow monies intended to pay homeowners’ taxes and insurance to cover FMC’s operating expenses. As a result, Oklahoma City homeowners missed making their tax payments.
“The indictment further alleges that McCord laundered the stolen escrow monies by using the funds to write himself checks, pay more than half the purchase price of his son’s $900,000 Oklahoma City home, and build a custom vacation home in Colorado,” a release from the United States Attorney’s Office in the Western District of Oklahoma read.
On Monday, McCord pleaded guilty to five counts of the indictment, including bank fraud, money laundering, and false statements to a financial institution.
McCord faces up to 30 years in prison and a fine of up to $1 million on each bank fraud and false statement to a financial institution charge. He also faces up to 10 years in prison and a $250,000 fine on the money laundering count.
As part of the plea agreement, the government agreed to not advocate for a sentence above 104 months. Under the agreement, McCord will also be ordered to pay restitution to the victims in amounts to be determined by the court.