U.D. man gets day in jail, must pay back $11M mort­gage scam

Daily Times (Primos, PA) - - NEWS -

PHILADEL­PHIA >> An Up­per Darby man was sen­tenced Thurs­day to one day in jail, five years of su­per­vised and to pay over $11.5 mil­lion in resti­tu­tion for his role in a multi-mil­lion-dol­lar, fraud­u­lent mort­gage scheme, U.S. At­tor­ney Wil­liam M. McSwain an­nounced Thurs­day.

David Fili Jr., 48, of the Drexel Hill sec­tion of the town­ship, pre­vi­ously en­tered a guilty plea to 10 counts of wire fraud and two counts of bank fraud. He was sen­tenced Thurs­day by U.S. Dis­trict Judge Joel H. Slom­sky.

Along with Ge­orge Barnard, 47, of New­town Square, PA, Fili owned Cap­i­tal Fi­nan­cial Mort­gage Cor­po­ra­tion (“CFMC”), based in Delaware County. Be­tween 2005 and March 2013, Fili and Barnard is­sued re­fi­nance mort­gage loans to cus­tomers of CFMC.

But in­stead of us­ing the money to pay off their cus­tomers’ out­stand­ing first mort­gages, how­ever, they di­verted $9,781,977 to them­selves from bank ac­counts be­long­ing to CFMC and sev­eral ti­tle com­pa­nies owned by Barnard. Barnard was pre­vi­ously sen­tenced to five years in prison for his role in the scheme.

As part of his guilty plea, Fili ad­mit­ted that he used much of the money he di­verted to buy a va­ca­tion home and to sup­port his gam­bling habit, while Barnard used the money he di­verted to buy multi-mil­lion dol­lar beach homes in Avalon, N.J., sev­eral yachts, and to pay the salary of a yacht cap­tain. At the time that the scheme fell apart in March 2013, Fili and Barnard left over two dozen CFMC cus­tomers stuck with two mort­gages on their homes be­cause CFMC had failed to pay off their cus­tomers’ ex­ist­ing first mort­gages.

“For many years, Fili de­frauded hon­est, hard­work­ing in­di­vid­u­als out of their money so that he could gam­ble it away and re­lax in his il­le­gally ob­tained va­ca­tion home,” McSwain said. “The de­fen­dant’s va­ca­tion ends now. We are thank­ful that the Court or­dered him to pay mil­lions of dol­lars as a re­sult of his crimes.”

The case was in­ves­ti­gated by the Fed­eral Bureau of In­ves­ti­ga­tion and the Depart­ment of Hous­ing and Ur­ban De­vel­op­ment, Of­fice of In­spec­tor Gen­eral, and was pros­e­cuted by As­sis­tant U.S. At­tor­ney Michael S. Lowe.

“For many years, Fili de­frauded hon­est, hard­work­ing in­di­vid­u­als out of their money so that he could gam­ble it away and re­lax in his il­le­gally ob­tained va­ca­tion home. — U.S. At­tor­ney Wil­liam M. McSwain

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