Reuters: Financial Services and Real Estate: Abacus Federal Savings Bank indicted for mortgage fraud

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Abacus Federal Savings Bank indicted for mortgage fraud May 31st 2012, 14:39 NEW YORK | Thu May 31, 2012 10:39am EDT NEW YORK May 31 (Reuters) - Abacus Federal Savings Bank, which caters to Chinese immigrants in and around New York City, has been charged with selling fraudulent mortgage loans to Fannie Mae in a 184-count indictment. The bank's employees helped borrowers to falsify loan documents to meet Fannie Mae requirements, the Manhattan District Attorney's Office said on Thursday. The scheme resulted in the sale of hundreds of millions of fraudulent loans to Fannie Mae between 2005 and 2010. Nineteen employees of the bank also were charged in the case, eight of whom have pleaded guilty, the District Attorney's office said. The charges include grand larceny, conspiracy and falsifying business records. Widespread mortgage fraud led to the financial crisis in 2008. Law enforcement authorities have been criticized for their failure to bring criminal charges against major banks for their roles. Abacus was founded in 1984 by business leaders in New York's Chinese community, according to its website. It has branches in New York, New Jersey and Pennsylvania.

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