Not Only Freddie & Fannie Execs Under Indictment, So Are Employees of Deval Patrick’s Former Firm

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.

About Rob "EaBo Clipper" Eno

  • involved in the government enforced subprime lending scheme should be removed from office and charged accordingly.

    Newt, you are guilty as hell…I’m not the only one that’s lost 20% of my equity.

    You tell me why I should vote for you…..

  • …in some ways I envy your ability to ignore the faults of those you admire and condemn with guilt by association your enemies.  But I mostly think it’s pathetic.  

  • So, if you want to talk about sub-prime mortgages, how about talking about Bank of America, which  issued more sub-prime mortgages than anybody.   And, what about Scott Brown’s involvement with Bank of America?   Well Scott Brown owns Bank of America stock valued at nearly $50,000!  

    Yes, Scott Brown owns a major stake in Bank of America, which is the national leader in sub-prime mortgages.

  • Complaints filed by the SEC have far more detail regarding the matter.  http://www.sec.gov/news/press/…  

    Of particular interest is this graphic http://www.sec.gov/news/press/… which illustrates the degree to which Fannie and Freddie misled investors and the public concerning their exposure to subprime mortgages.  

    In my view, the scandals at Fannie and Freddie are the worst in the history of the United States.  This makes Teapot Dome look like a molehill and Whitewater look like a raindrop.