Today’s news of Fannie and Freddie executive indictments have taken Boston by storm, due to a respected businessman being one of them.
The charges against Syron, a Boston native and former president of the Federal Reserve Bank of Boston, caught many local business people by surprise.
“He’s an outstanding businessman,” said Kevin Kiley, chief operating officer of the Massachusetts Bankers Association. “I’m surprised that they have taken the action.”
But that is not the only link Massachusetts has to sub-prime housing indictments. Nine former employees of Argent Mortgage, a subsidiary of ACC Capital Holdings, were indicted in June of 2011. You may remember that Deval Patrick served on the board of ACC Capital, best known for it’s Ameriquest subsidiary. The time period specified in the indictment, includes the time that Patrick was on the board.
A Cleveland-area grand jury indicted nine former employees of subprime lender Argent Mortgage alleging the workers, which included managers and supervisors, played a role in approving fraudulent subprime home loans, according to the Cuyahoga County prosecutor’s office.
The felony charges claim Argent employees and four others, including real estate appraisers, engaged in a pattern of corrupt activity, theft and tampering with records, according to the indictment.
Argent – formerly the wholesale lending arm of now defunct Ameriquest – was one of the biggest subprime lenders in the Cleveland area from 2003 to 2005, according to the Cleveland Plain-Dealer. No one connected with Argent could be located for comment.
Deval Patrick has never fully explained his role at the sub-prime lender. A lender who sold fraudulent loans, before, during and after the time Deval Patrick was on the Board of Directors.