PRESIDENT OF NATIONAL SETTLEMENT AGENCY PLEADS GUILTY TO EMBEZZLING

Defendant Admits to Stealing More Than $13 Million in Mortgage Refinancing Proceeds

NEW YORK—Steven Leff, 45, the former president of National Settlement Agency (NSA), pleaded guilty today to a felony information charging him with embezzling the proceeds of mortgage refinancing transactions, U.S. Attorney for the Eastern District of New York Benton Campbell and Assistant Director-in-Charge of the FBI New York Field Division Mark J. Mershon announced. The proceedings were held before U.S. Magistrate Judge Thomas E. Boyle at the U.S. Courthouse, in Central Islip, N.Y.

The government’s pleadings allege that Leff was entrusted with mortgage refinancing proceeds in his capacity as president of NSA, which acted as a settlement agent for numerous FDIC insured banks. NSA’s function was to disburse these proceeds to various individuals and entities, including individuals who sold and refinanced properties and prior mortgage holders. Instead, Leff embezzled the proceeds of several refinance loans, which should have been used to pay off the outstanding principal amounts on the prior mortgages. As part of his guilty plea, Leff admitted that, in total, he stole more than $13 million in refinanced loan proceeds. At sentencing, Leff faces a maximum sentence of 30 years in prison.

“In the midst of a mortgage refinancing boom, the defendant took advantage of his position as a trusted agent of lender banks to embezzle mortgage loan proceeds for his personal gain,” said U.S. Attorney Campbell. “The mortgage refinance process relies on all parties to a transaction acting with honesty and integrity. When banks and borrowers are defrauded by one whose job it is to act on their behalf, we will seek to bring the wrongdoer to justice.”

“Leff was entrusted with large sums of money intended to be disbursed to others in the refinancing process. In simple terms, he stole much of it. We investigate embezzlers as vigorously as we investigate bank robbers,” said FBI Assistant Director-in-Charge Mershon.