I did find McGrath's name in the news but not for his sentencing:
Fannie Mae sued insurance companies, including Great American Financial Resources Inc. and The Travelers Cos., claiming they are responsible for losses on the $131 million Fannie Mae paid for fraudulent mortgage loans.
In the lawsuit filed yesterday in federal court in Washington, Fannie Mae said that under Financial Institution Bonds sold by the insurers, they are responsible for the losses. The company currently faces $108 million in exposure, it claims.
In June 2009, Michael J. McGrath Jr., the former president of U.S. Mortgage Corp., pleaded guilty to two criminal counts in a conspiracy that prosecutors said defrauded Washington-based Fannie Mae.
McGrath said that from 2004 until January 2009 he fraudulently sold credit-union loans and used the proceeds to finance U.S. Mortgage’s operations and investments.
Other defendants in yesterday’s lawsuit include Chubb Group of Insurance Cos., Lloyd’s of London, CNA Insurance Co., HCC Insurance Holdings Inc.’s Professional Indemnity Agency, Zurich North America, Liberty Mutual Group, and Fidelity & Deposit Co. of Maryland.
The case is Federal National Mortgage Association v. Certain Underwriters at Lloyd’s, London, 10cv1775, U.S. District Court for the District of Columbia (Washington). |
