The former president of a New Jersey-based mortgage company has been sentenced to 14 years in federal prison for orchestrating a $136 million fraud scheme.
Forty-seven-year-old Montclair resident Michael McGrath had pleaded guilty to mail and wire fraud conspiracy and money laundering.
At Thursday's sentencing in U.S. District Court in Newark, he also consented to forfeiture of the proceeds and $14 million of his assets that the government has seized or frozen.
Prosecutors say McGrath and other officials of Pine Brook-based U.S. Mortgage Corp. conspired to sell to Fannie Mae hundreds of loans belonging to various credit unions and falsified records to conceal the sales.
McGrath admitted he used the proceeds for personal investments and to prop up his company, which went bankrupt after investigators uncovered the scheme.