A Nissequogue man pleaded guilty in federal court Tuesday to conspiring to commit wire and bank fraud by diverting $8.9 million in loans — money that his firm received for mortgages — into personal expenses and into paying off other fraudulently obtained loans, prosecutors said.
Edward E. Bohm, 41, president of sales and an undisclosed owner of Garden City-based Vanguard Funding, entered the plea in U.S. District Court Judge Sandra J. Feuerstein’s Central Islip courtroom, assistant U.S. attorney for the Eastern District of New York Richard P. Donoghue said in a news release.
Bohm faces up to 30 years in prison, restitution, criminal forfeiture and a fine when sentenced on Dec. 17, prosecutors said.
His attorney could not be immediately reached for comment.
Vanguard was a 33-branch mortgage lending institution licensed in several states when its executives were charged with cheating "warehouse lenders," financial firms that extend lines of credit to mortgage companies so they can lend to the public or refinance loans.
Prosecutors said that between August 2015 and March 2017, Bohm “engaged in a scheme in which he and others obtained warehouse, or short-term, loans for Vanguard by falsely representing that Vanguard would use the proceeds of those loans to fund mortgages or provide mortgage refinancing for Vanguard’s clients.”
Officials added that Bohm and his colleagues at the now-defunct firm would use the money for personal expenses, their own compensation and to pay off other loans they had obtained fraudulently.
The plea marks the third time that a Vanguard official has pleaded guilty in connection with the scheme, prosecutors said. Last year, Vanguard’s chief operating officer, Matthew T. Voss, was sentenced to two years in prison after pleading guilty to conspiring to commit wire and bank fraud, officials said.
And in February 2018, the firm’s chief financial officer, Edward Sypher Jr., 42, of Scarsdale, pleaded guilty to conspiring to commit wire and bank fraud. He was sentenced in December to 18 months in prison, officials said.