LOCAL : West Point Graduate Convicted of Bilking B of A of $95 Million
A top West Point graduate was convicted of three counts of mail fraud today for masterminding a complex mortgage securities scheme that bilked Bank of America out of $95 million.
A federal jury in Los Angeles deliberated two weeks before convicting David A. Feldman, 49, of Palos Verdes Estates. He was acquitted on two other mail fraud charges.
Feldman faces a 15-year prison term when he is sentenced Aug. 20, Assistant U.S. Atty. Leslie Swain said. The prosecutor described the fraud as “one of the largest in savings and loan history.”
Feldman, a Vietnam war veteran and graduate of West Point, oversaw an elaborate scheme in which more than $144 million in mortgage loans were sold to 20 banks and thrifts in nine other states between 1982 and 1984.
Bank of America, the biggest loser in the fraud, has a civil racketeering suit pending against Feldman to recover $95 million.
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