Abacus Federal Savings Bank Indicted In Large Scale Mortgage Fraud Conspiracy

Press Release

On May 31, 2012, Abacus Federal Savings Bank and eleven of its former employees were indicted in a false document mortgage fraud scheme resulting in the sale of hundreds of millions of dollars worth of fraudulent loans to the Federal National Mortgage Association. The DA also announced that an additional eight former employees have already waived indictment and admitted their guilt in connection with this conspiracy. The 184-count indictment charges eleven individuals and Abacus itself with residential mortgage fraud, securities fraud, grand larceny, conspiracy, and falsifying business records, among other related charges.