Categorized | Commercial

Head Lender of a Tacoma Bank Indicted on Fraud Charges

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The head of a Tacoma Bank, as well as another banking executive, have been charged with fraud that may have contributed to the housing bubble in the area. The executive, Shawn Portmann, is being accused of issuing loans to borrowers who were not qualified.

It is believed that Portmann forced other workers of the Tacoma Bank to put fraudulent data on mortgage applications in order to bring in bonuses from the company. Investigators believe that his actions played a major role in causing the banks collapse, which in turn cost investors and taxpayers millions of dollars.

The U.S. Attorney prosecuting the case has accused Portmann of not only destroying the bank single-handedly, but also of helping create the housing bubble and recession. He falsified more than two hundred and seventy mortgage applications and lied about property values that led to over forty million dollars in loans. Portmann did not act alone, but did serve as the leader of a group of individuals involved in the process. Many of those that worked under him have been charged already.

The investigation against Portmann has been going on for some time, and took a huge step forward last July. It was at that time that over one hundred thousand dollars was found in a bag that belonged to Portmann. It was soon found out that he was using money from his personal bank accounts to prove that potential loan recipients could handle the mortgage loan for which they were applying. After they were approved, he would put the money back into his own account.

It is believed that almost $500 million dollars in lent money was obtained through fraudulent applications submitted by Portmann.

 

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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