Lend America Crooks!

This is from NewsDay.com at http://www.newsday.com/long-island/nassau/melville-loan-firm-exec-defend-fraud-charges-1.1542516

"A top executive at a mortgage company accused by the federal government of making fraudulent loans forcefully defended both himself and Melville-based Lend America Thursday, a day after a judge refused to issue a restraining order against the company.

"It's unfounded, it's ridiculous," said Michael Ashley, 44, an executive vice president of the company. "Lend America is the most legitimate lending company out there. We stand behind everything we do over here."

Ashley and Lend America were accused by the U.S. attorney's office in a 155-page federal complaint filed Tuesday of running a scheme to defraud the Federal Housing Administration. The complaint said the company deliberately made FHA-insured loans to unqualified borrowers, knowing that if the loans defaulted, the FHA would pick up the tab.

Federal Judge Joseph Bianco, ruling in Central Islip, denied the U.S. attorney's request for a temporary restraining order preventing Lend America from issuing FHA-backed loans. He permitted the U.S. attorney's office to file another injunction. Officials did not say Thursday if it would.

In court papers, Lend America's attorneys argued the government presented no evidence that the company was either committing or was about to commit any fraud.

The federal complaint cited 40 instances of what the government said were fraudulent loans and accused Ashley of leaving a trail of fraud and other violations at numerous companies in his wake since pleading guilty in 1993 to conspiracy to commit wire fraud.

But defense papers said the 40 cases were old ones - sometimes years old - and statistically insignificant. "Forty fraudulent loans - that's very serious," Ashley said. "But we originated 12,000* loans."

The defense papers also said Lend America tightened its controls over loan officers during the summer and fired some employees it believed engaged in fraudulent practices.

Ashley said the FHA wouldn't lose a cent. He said the investigation was the result of an employee in the federal Housing and Urban Development department's inspector general's office who has a "vendetta" against him. He declined to identify that employee.

As for himself, Ashley acknowledged his felony record but noted the case occurred 16 years ago. "It is not indicative of who I am today," he said.

*Correction: The number 12,000 was incorrect in previous versions."


What is this crap? They are still in business and The FHA only checked for violations in New York! What about the other states? I am in Iowa and I can tell you they are messing with people here! If this is a Federal case, what about the rest of us? Don't we matter? Just from looking at complaint boards I can assure you they are writing bad loans in other states! Get with the program! Our mighty tax dollars at work! We want to be heard too! Watch out Michael Ashley. We are coming for you and your lying cheating company too!