Exec Pleads Guilty In $30M Ponzi Scheme

Law360, New York (October 10, 2006, 12:00 AM EDT) -- The former head honcho of a residential mortgage business who raised more than $30 million from more than 200 investors to pay off personal gambling debts and finance his lavish lifestyle was felled Tuesday, pleading guilty to securities fraud charges brought by federal regulators.

The U.S. Securities and Exchange Commission on Tuesday said 46-year-old Salvatore Favata, the former president of Orange County, Calif.-based National Consumer Mortgage LLC, falsely promised 233 investors return rates of 30-60% on their investments, but instead used new investor funds to pay...
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