OKLAHOMA CITY (KFOR) – A former president of an Oklahoma City-based mortgage company has been sentenced to serve 104 months in prison and pay $51,861,806.40 in restitution to victims for defrauding locally-based banks, Fannie Mae, homeowners, 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.
At today’s sentencing hearing, the Honorable Robin J. Cauthron found that McCord caused a total loss of more than $95,000,000.00 to local banks, other financial institutions, and borrower homeowners.
“This was a carefully calculated scheme by which the defendant defrauded local banks out of tens of millions of dollars, made false statements to a financial institution, diverted escrow monies intended to pay homeowners’ taxes and insurance premiums to cover his company’s operating expenses, and then laundered the proceeds to fund his lavish lifestyle,” said Acting U.S. Attorney Robert Troester. “This sentence should serve as notice that those who defraud financial institutions for personal gain will be held accountable.”
McCord pleaded guilty to the fraud back in May.
Before the plea agreement, McCord faced 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, as well as up to 10 years in prison and a $250,000 fine on the money laundering count.
Today, the Court ordered McCord to self-surrender to the Federal Bureau of Prisons on January 6, 2022 for his sentence. The Court also ordered McCord to serve three years of supervised release following incarceration.