“This scheme is plotted on the chart to my left –the smallest demonstrative exhibit that I’ve ever seen used in the DA’s office,” said Manhattan District Attorney Cy Vance Jr.
The exhibit Mr. Vance was referring to during a press conference in the 8th floor Library at One Hogan Place earlier today was indeed small, just barely large enough to be read from a generous distance.
The scheme, however –in which Abacus Federal Savings Bank, a bank with predominantly Chinese clientele, allegedly helped its customers submit fraudulent mortgage applications that resulted in approximately a billion dollars worth of mortgages issued out by Fannie Mae– was infinitely larger in size, scope and relevance.
Nineteen individuals, all former employees and managers of Abacus Federal Savings Bank, were indicted as a result of the scam. Seven of those people already entered guilty pleas, while the remainder of them were set to face arraignment –and Judge Renee White– in state court in Manhattan throughout the day.
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