Included in the five prohibition notices issued by the NCUA in April was a former CEO of the now defunct U.S. Mortgage Corporation and CU National Mortgage, LLC.
Michael J. McGrath, Jr. is one of five individuals who were convicted of crimes of dishonesty and are now prohibited from participating in the affairs of any federally insured financial institution. McGrath pleaded guilty to conspiracy charges to commit mail and wire fraud and money laundering while serving at the Pine Brook, N.J.-based companies. He was sentenced to seven years in prison and three years' supervised release, and was ordered to pay more than $139.6 million in restitution.
McGrath conspired over a five-year period to fraudulently sell credit union loans and used the proceeds to address cash flow problems created by losses on investments in mortgage-backed securities.
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