Local News in Brief : Sentenced for Fraud
A Covina businessman was sentenced Monday to four years in prison and ordered to pay $10 million restitution for orchestrating a complex loan fraud that cost Bank of America $95 million.
Marvin H. Weiss, 60, who ran a loan brokerage firm, Energy Resources Financial, will have to “work something out with the government” because he does not have the $10 million, defense attorney Michael Kenney said.
Weiss pleaded guilty July 20 in U.S. District Court to three counts of mail fraud. He admitted that between 1980 and 1984, Energy Resources posed as a lender of millions of dollars in a scheme that prompted financial institutions nationwide to invest in mortgage pools. Bank of America, which acted as the escrow agent for the loan pools, assumed responsibility for the investors’ losses.
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