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Davenport mortgage company owner admits to wire fraud

A Bettendorf man will spend a little over eight years in prison after pleading guilty to wire fraud. On Thursday, October 02, 2014, according to a statement fro...

A Bettendorf man will spend a little over eight years in prison after pleading guilty to wire fraud.

On Thursday, October 02, 2014, according to a statement from Attorney Nicholas A. Klinefeldt, 66-year-old Thomas Richard Jager was sentenced to eight years and one month in prison.

According to the statement, Jager was the owner and managing employee of Whitehall Funding, Inc., which is a mortgage servicing company in Davenport.

His responsibilities included being a sub-servicer to certain Department of Housing and Urban Development. He was responsible for providing remittance reports and payments to investors of certain mortgage backed securities secured by loans, making escrow payments, and holding balances for escrow accounts.

Klinefeldt said from 2008 to 2010 Jager did not forward monthly remittance payments to investors and provided false reports. He also failed to distribute lump sum payoffs of mortgages to investors and transferred money to his personal bank account.

“Jager admitted to being responsible for over $7 million in total loses,” Klinefeldt said.

From 2007 to 2010, Jager should have received about $18,000 in fees for loan servicing but instead he transferred $1,182,650 in funds owed to investors and property owners into his personal bank account.

“Evidence showed that he spent funds obtained as part of the fraud on credit card purchases, a hot tub for his home, purchase of vehicles, maid service, a Hilton Head time share, country club memberships, and other personal items, taxes and fees,” Klinefeldt said.

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