Ex-US Mortgage Head Gets 14 Years For $136M Fraud

Law360, New York (February 24, 2011, 8:07 PM EST) -- A federal judge Thursday sentenced the former president of bankrupt broker U.S. Mortgage Corp. to 14 years in prison for fraudulently selling $136 million in credit union loans to Fannie Mae and funding his business with the proceeds.

Judge Katharine Hayden of the U.S. District Court for the District of New Jersey ordered Michael McGrath to serve three years of probation on top of his 168-month prison term for orchestrating the fraud scheme, according to the office of the U.S. Attorney in New Jersey.

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