Trial underway for Fannie Mae employee accused of kickback scheme

by Adam Smith13 Mar 2014
The trial of a former Fannie Mae employee accused of soliciting kickbacks for foreclosure listings has begun in California.

The LA Times has reported that former Fannie Mae employee Armando Granillo, has faced court in Santa Ana accused of soliciting kickbacks from a real estate broker in exchange for foreclosure listings. Granillo's defense lawyers claimed he had no intention of defrauding Fannie Mae when he accepted cash in a federal sting, but that taking cash in exchange for foreclosure listings was a commonly accepted practice.

Granillo, a former Fannie Mae foreclosure specialist, was caught last year on video accepting $11,200 in a federal sting. Granillo stands accused of defrauding Fannie Mae by promising Arizona real estate broker Angus Maughan unlimited foreclosure listings in exchange for a 20% cut of Maughan's commissions.

"The scheme might have worked except for one thing. Mr. Maughan called the authorities," Assistant U.S. Atty. Stephen Goorvich said.

COMMENTS

  • by afifinanical@gmail.com | 3/13/2014 12:47:10 PM

    If he gets 3 years in prison that would be $3733 per year he would have earned. Does everyone remember Kwame Kilpatrick. He took an estimated 900,000 but got 27 years, so that worked out to be 33,333 per year.

    Crime does not pay and neither does mortgage fraud. I have made 6 figures for over a decade honestly. I am thankful they finally cleaned up our industry....

  • by Ron | 3/13/2014 12:47:43 PM

    Good! Great job Mr. Maughan! Our industry can use as much infusion of honesty and integrity as possible. And of course we all know the attorney field could use a huge douse of the same; really? So should we all figure out how to make extra money from our job positions and call it "a commonly accepted practice"?

  • by Aaron | 3/13/2014 1:02:00 PM

    Hats Off to the real estate broker for being honest and reporting this kick back scheme.

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