Miami financier charged in securities fraud scheme
MIAMI (AP) – A Miami financier is facing fraud charges for allegedly altering credit scores on mortgages that were sold as securities to investors.
Federal prosecutors said Thursday that 49-year-old Steven Gordon of Bayview Financial inflated the credit scores on some 2,800 mortgages to increase their value as securities. The scheme netted Gordon more than $2.8 million in commissions.
Gordon attorney Marty Steinberg said his client has agreed to plead guilty to wire fraud and will turn himself in next week. Steinberg said Gordon has paid restitution to Bayview and that no investors suffered losses because of the fraud.
Prosecutors said Bayview Financial has cooperated fully in the probe and removed the fraudulent mortgages from its securities.