The former president of a defunct mortgage banking firm that operated from Melville, New York, has been sentenced to prison for defrauding the government.

Ideal Mortgage Bankers, which operated as Lend America and Lending Key, lost its Federal Housing Administration and Ginnie Mae approvals in 2009.

Two years later, its former president pled guilty to directing employees to divert refinance proceeds that were supposed to pay off old loans to accounts where they could be used to pay company operating expenses.

Source: Mortgage Daily