PHILADELPHIA -- A local mortgage broker has pleaded guilty to masterminding a $4-million mortgage fraud he ran through Police & Fire FCU.
James McElroy, 54, financed at least 13 fraudulent mortgages in Pennsylvania, Florida and New Jersey through a variety of lenders, including Countrywide, IndyMac, Northwest Savings Bank, American Freedom Assurance, Amtrust Bank and Police & Fire FCU, where he had an account he used to process the mortgage loan proceeds and pay accomplices.
McElroy established fake companies and submitted false claims to obtain funds, but the companies conducted no business and provided no services. Authorities said the transactions, which occurred between December 2006 and September 2008, resulted in losses of more than $4 million to mortgage companies, banks and credit unions.
Prosecutors are seeking $4 million in forfeiture when McElroy is sentenced Feb. 4.