Falmouth Mortgage Broker Admits To $2.5M Scheme

FALMOUTH, MA — The president of a now-defunct Falmouth mortgage company on Wednesday pleaded guilty to scamming the government out of $2.5 million to pay for personal expenses. Robert Pena, 68, of Falmouth, admitted to six counts of wire fraud and one count of conspiracy in federal court in Boston. He will be sentenced January 5.

Pena was indicted last year. Prosecutors said while president of Mortgage Security Inc., he stole millions from mortgage borrowers and used the money for personal and business expenses. (Sign up for free daily newsletters and breaking news alerts from Falmouth Patch.)

"Beginning in 2011, Pena began diverting money that borrowers were sending to Mortgage Security Inc.," Acting U.S. Attorney William Weinreb said in a statement. "Specifically, Pena deposited high-dollar, loan-payoff checks into bank accounts unknown to Ginnie Mae and then used those funds for personal and business expenses. Pena also diverted borrowers’ escrow funds and mortgage-insurance premiums for his own use. In total, Pena took approximately $2.5 million, which Ginnie Mae then had to pay to the investors whose investments it had guaranteed."

Weinreb continued, "Pena also attempted to cover up his scheme by providing false reports to Ginnie Mae about the status of the loans MSI was servicing."

Pena faces up to 20 years in prison.

Previous:

Falmouth Businessman Stole $3M in Mortgage Scheme: Feds

Photo: Shutterstock