Mortgage Lender Executive Pleads Guilty To $8.9 Million Fraud

CENTRAL ISLIP, NY - A top executive at a Long Island mortgage lender Vanguard Funding pleaded guilty on Tuesday to charges related to a $8.9 million fraud, according to the U.S. attorney.

Edward E. Bohm, president of sales, and an undisclosed owner of Vanguard was charged with conspiring to commit wire fraud and bank fraud.

The guilty plea was entered before United States District Judge Sandra J. Feuerstein.

When sentenced, Bohm, 41, of Nissequogue faces up to 30 years in prison, as well as restitution, criminal forfeiture and a fine.

Between August 2015 and March 2017, Bohm engaged in a scheme in which he and two others used money from Vanguard clients, which they believed were to fund mortgages or provide mortgage refinancing, to pay personal expenses and compensation, the U.S. attorney said.

The also used the money to pay off loans they had previously obtained with fraudulent loan submissions for improper purposes.

Last year, Vanguard’s Chief Operating Officer, 40-year-old Edward J. Sypher, Jr., of Scarsdale, and Vanguard's Chief Financial Officer, 42-year-old Matthew T. Voss, 42, of Northport, also entered guilty pleas in connection with this fraud and were sentenced to prison.

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