EagleTribune.com, North Andover, MA
New Hampshire
Four indicted on charges of mortgage fraud at Salem company
Sandown couple charged with skimming
Published: January 8, 2009
CONCORD — Two brothers, who worked at a Salem mortgage lending company, and a Sandown couple were charged with skimming approximately $300,000 from national mortgage lenders, according to federal indictments released yesterday.
Thomas Ryder, 30, of Hopkinton and his brother, Paul, 27, of Hudson are charged with four counts of wire fraud and a single count of mail fraud in connection with allegedly creating bogus loan applications starting in January 2007.
The Ryders worked for M&M Mortgage Co. on Ermer Road in Salem.
The brothers lied about buyers' monthly incomes, the actual purchase price of properties, and the intent of the buyers, according to prosecutors. That allowed the Ryders to inflate the purported purchase price, skim the difference, and split it with a Sandown couple who served as buyers for properties in Derry, Nashua and Hampton, according to the indictment.
Londonderry defense lawyer Richard Monteith, who represents Thomas Ryder, said his client committed no wrongdoing.
"All we can really say at this point is he pled not guilty, he is not guilty, and we are going to vigorously defend these charges," Monteith said. "Right now, we haven't seen any evidence beyond the indictment."
Lawyers for the three others charged in the case did not return phone calls seeking comment. Prosecutors said the brothers did not act alone.
Frank and Maureen Blake of 62 Compromise Way in Sandown were indicted last month on charges they helped buy the properties and received some of the skimmed proceeds. Frank Blake is charged with four counts of conspiracy to commit wire fraud.
Maureen Blake is charged with two counts of conspiracy to commit wire fraud. Reached at home yesterday, she declined comment and referred questions to her lawyer, Marty Leppo of Boston. The couple are scheduled to be arraigned Tuesday in U.S. District Court.
The Ryders and Blakes used a Salem lawyer to secure titles to the properties, according to the indictments. The lawyer has not been charged in the case.
The charges come as the country grapples with the fallout from the mortgage lending crisis, where lack of oversight led to a vast number of homeowners defaulting on their home loans. In the Ryders' case, mortgage lending companies, including Countrywide Home Loans, were the victims, according to the indictments.
The office in Salem where the Ryders worked did not fall under the jurisdiction of the New Hampshire Banking Department, which oversees non-bank mortgage lenders and brokers.
New Hampshire Banking Commissioner Peter Hildreth said yesterday his agency was barred from oversight of companies such as M&M Mortgage Co. because of a federal court decision reached two years ago. That decision concluded that subsidiaries of national financial institutions could not be regulated by states. Oversight would fall to federal regulators instead.
"For those we do regulate, we go in every 18 months and review mostly loan documents," Hildreth said. "We make sure they are in compliance with state and federal laws and, if there's a complaint filed, we will investigate the complaint."
A task force of federal investigators focused on mortgage fraud investigated the case. U.S. Attorney Tom Colantuono assembled the task force in May. It includes FBI agents, postal inspectors, the Secret Service, Internal Revenue Service and federal prosecutors. They began investigating the case last year.
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