CORRECTED: US Mortgage Employee Beats Jail Time For $136M Fraud

Law360, New York (June 8, 2011, 5:41 PM EDT) -- U.S. Mortgage Corp.'s former service manager was sentenced Wednesday to two years' probation, beating jail time for his role in a scheme that fraudulently sold $136 million in credit union loans to Fannie Mae.

Leroy Hayden faced a statutory maximum sentence of five years in prison and a $250,000 fine for copping to one count of conspiracy in May 2010. He admitted to helping his boss, former U.S. Mortgage President Michael McGrath, sell mortgage loans to Fannie Mae from 2004 to January 2009.

McGrath, who also...
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