David Fili Jr., 45, has been charged with 10 counts of wire fraud and two counts of bank fraud, according to a report by the Philadelphia Business Journal. Fili co-owned Capital Financial Mortgage Corp. in Folsom, Penn., from 2005 to 2013, according Journal. Capital Financial began life as a mortgage broker, but soon became a direct mortgage lender.
Prosecutors allege that while Fili co-owned the company, he defrauded “numerous” lenders, including Wells Fargo, into purchasing mortgages issued by Capital Financial. The mortgages were represented as first mortgages, but were actually worthless second mortgages, the Journal reported. Fili also allegedly defrauded lenders who loaned the company money on a warehouse line of credit.
Prosecutors say Fili used some of the $9,7 million proceeds of the fraud to pay the mortgage on his own vacation home, and for “extensive casino and sports gambling.”
A Pennsylvania mortgage lender has been charged with 12 counts of fraud in a $9.7 million mortgage scam.