The Funding Source Syracuse

The Funding Source Syracuse

Thursday, June 4, 2015

Abacus Bank, New York and the US Government

The past few years have been lucrative for any regulator in the United States looking to enrich the public coffer in return to A. Impress voters or B. Spend proceeds on... say a new bridge over the Hudson River instead of returning fines to consumers who may have been hurt by unscrupulous mortgage lenders.

Putting the editorializing aside, it is good to realize that the average American in the judicial system is able to see the difference between actual mortgage abuse and a lender doing business.  Today, the United States was set back by a jury when it tried to claim that Abacus Bank in New York City was found not guilty of grand larceny and conspiracy

Two executives at the bank were acquitted on all charges. Yiu Wah Wong, the bank's chief credit officer, and Wai Hung "Raymond" Tam, the loan origination supervisor, were found not guilty of 80 counts each

Prosecutors claimed the defective loans falsely represented applicants' credit worthiness, employment, income and source of downpayments. They claimed the bank and its managers trained and directed the routine falsification of documents.

However, the bank's lawyer, Kevin Puvalowski, called the state's case "a bizarro prosecution," .   He stated that Abacus's loans went to borrowers capable of paying them, as shown by the fact that the borrowers who received loans from Abacus bank are.... paying those loans.   And, that the government is prosecuting a case by saying that Fannie and Freddie, who did not lose money, were harmed or would be harmed, in the future, by the loans - that are being paid, on time, every month.  

Which is why the jurors threw out the charges.  All 80 of them