Federal Judge Sentences Former Vanguard Funding Owner To 24 Months In Federal Prison For $8.9 Million Mortgage Fraud Scheme
A federal judge last week sentenced former Vanguard Funding owner Edward E. Bohm to 24 months in federal prison. Bohm is the former President of Sales and part-owner of mortgage lender Vanguard Funding, LLC.
The government accused Bohm of diverting more than $8.9 million of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing.
In February 2019, Bohm pleaded guilty to conspiring to commit wire and bank fraud.
As a result of the guilty plea, the court also ordered Bohm to pay $3,488,615.42 in restitution and $1,500,000 in criminal forfeiture.
The Government Accuses The Former Vanguard Funding Owner Of Massive Fraud
Federal prosecutors accused Edward Bohm and his associates of defrauding financial institutions from August 2015 through March 2017. Bohm and his partners pocketed money from short-term loans they falsely claimed were on behalf of consumers.
The scheme netted Bohm and others more than $8.9 million in short-term loans aka warehouse loans. They falsely told lenders that the loan proceeds would fund specific mortgages for Vanguard clients.
Instead, Bohm and his co-conspirators diverted the funds to their pockets. They also used the funds to pay off loans they had previously obtained through false loan applications.
Bohm is the third defendant to be sentenced in connection with this scheme. In February 2019, the court sentenced Vanguard SVP and CFO Edward J. Sypher, Jr. to 18 months’ imprisonment for conspiracy to commit wire and bank fraud. The court also ordered him to pay restitution in the amount of $3,488,615.42.
Also in February 2019, a federal judge sentenced Vanguard COO Matthew Voss to 24 months in prison after being convicted of wire and bank fraud charges. The court also ordered him to pay $3,488,615.42 in restitution following his conviction.
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