Bayview Financial’s Steven Gordon Pleads Guilty to Mortgage Fraud in Florida

Image by Getty Images via DaylifeThe U.S. Attorney for the Southern District of Florida (R. Alexander Acosta), and the FBI announced late last week that Steven Gordon, 49, of Miami, Florida, pled guilty to wire fraud charges related to a five-year scheme to inflate the value of mortgage loans to increase his commission compensation. Steven Gordon’s sentencing has been scheduled for April 23, 2009.

Prior to his dismissal in 2006, Gordon was a principal at Bayview Financial, LP, a Coral Gables, Florida-based finance company that buys portfolios of loans from lending institutions. Bayview Financial pooled these loans into newly formed business entities, called “special purpose entities,” and then issued securities backed by those loans to the investing public. During 2006, 2005 and 2004, respectively, Bayview Financial and its affiliates securitized approximately $2.056 billion, $0.954 billion and $1.428 billion, in offerings of residential and commercial mortgage loans, including $1.989 billion, $0.884 billion and $1.243 billion of residential mortgage loans.

While employed at Bayview Financial, Gordon held the title of Director of Residential Acquisitions. One of Steven Gordon’s primary duties was to negotiate the purchase of thousands of loans for Bayview Financial’s residential mortgage securitization program. Gordon’s incentive compensation was based, in part, on his ability to buy those loans at a low cost.

Late last week, Gordon admitted that between 2001 and 2006, he engaged in a scheme to defraud Bayview Financial, in which he regularly altered credit information affecting the value of more than 2,800 loans acquired for Bayview Financial’s residential mortgage securitization program. Gordon’s fraudulent scheme caused Bayview Financial to pay him more than $2.8 million in excessive and undeserved bonuses.

Posted By: Ralph Roberts @ 11:21 pm Comments (15)
Filed under: Arrest,Florida,Mortgage Fraud

15 Comments »

1. OMG!! They finally caught one! I have been a victim of Bayview/Interbay Funding based out of Coral Gables FL for over 10 years. They will not allow me to refinance (first they only did commercial refinancing, now they have residential refinancing – but they deny you). They said I have no equity in my home, which I have lived in for over 15 years, first mortgage, no refinancing and wonderful location, also..they will not permit another company to purchase my loan. After 15 years, my balance is still the same amount as when I first purchased. They also mismanaged my funds, my accounting records, withheld payments from being posted and denied it, which forced me into two seperate forbearance plans, where they charge you an extra $5k because you were late on your payments. Talk about a PENALTY! Wow!

   I can’t wait until their whole corrupt system is broken down and exposed.

   Thanks for your time,
   Patiently waiting for prayers to be answered, in this predatory world,
   Me.

   Comment by Victim of Bayview — May 7, 2009 @ 12:54 pm

2. I am having exactly the same problem with my loan. there has to be a way to charge them with defrauding the consumer and get them to eat the loan. They have to be violating a law. Now they wantto add $32, 000 to my loan without a deliniation of what it is for!

   Comment by felicia — May 13, 2009 @ 4:22 pm

3. Do you believe the principals of Bayview did not know what was going on?

   Bunch of criminals. corraption, corraption, corraption.

   All of them should go to jail. But the money they stole from the public is probably protected in the Bahamas.

   The Obama administration should send FBI investigetors to investigate and lock all of them up for defrauding the public.

   Bayview is a shamefull company. God knows why Blackstone bought them.

   Comment by another Victim of Bayview — May 14, 2009 @ 10:04 pm

4. People… Send me a letter with contact info. We are working on a class action law suit against them. Join us. Mr. Ice, PO Box 50, Houston, Missouri 65483

   Comment by Cody — July 21, 2009 @ 3:30 pm

5. Bayview said they purchased the mortgage on a house i was buying,but later said another company had bought it.I made payments to Bayview for a while and they did not even hold my note.They did buy it eventualy. Then forclosed on me for not paying them,while the other company held my note.They said they were part of the other company.Hard to understand -i know- but it sure ruind my credit!!!!!!!!

   Comment by Larry — July 25, 2009 @ 10:02 pm

6. I am also a bayview victim someone needs to stop them

   Comment by Vic — December 8, 2009 @ 9:52 pm

7. For anyone looking to Refinance your Commercial Loans please contact me Dave Dorsey DDorsey@nolandlord.com

   Comment by Dave Dorsey — February 3, 2010 @ 3:16 pm

8. I worked with that guy, he’s a total slime. This all happened after I left but I never got a good vibe from him

   Comment by John — February 10, 2010 @ 11:41 am

9. I recently used http://www.apexmtg.com for my most recent Commercial Mortgage NJ . They are friendly, accurate with great rates; I would never go to another lender again.

   Comment by Kim Smith — April 28, 2010 @ 9:32 am

10. I worked for bayview financial noticed there wasn’t something right when processing the loans something was not kosher. When I brought it up to human resources I was fired for catching the truth a week before thanksgiving which left me unemployed after September 11th. Priscilla Mae

    Comment by Anonymous — May 18, 2010 @ 10:20 pm

11. THIS IS THE WORSE COMPANY THAT I’VE EVER HAD DEALING WITH , JUST THE THE BLOGGER ABOVE THE SAME STUFF HAPPEN TO ME…CROOKS..

    Comment by JIMMY — May 19, 2010 @ 7:15 pm

12. anyone know who is the current CEO of Bay View . Any one want to get in class action law suite with them .
    About loan motifiy. and forclosure.

    Comment by ivyivy — July 9, 2010 @ 12:02 am

13. I too am a victim of Bayview Financial also doing business as Interbay Funding. Please email me at rfl305@yahoo.com with your story. I would love to talk to you about lawsuit.

    Comment by Rose — March 24, 2011 @ 1:33 am

14. I am another victim of BayView / Interbay Funding. We were building housing for Veterans. The loan was to be $00K they only disbursed 157K stating there would be a second draw when it was time for the second draw they said there was no second draw and we were locked in for two years or we would be fined..

    While I had them in court for fraud they illegually took me to court for nonpayment, foreclosed and attempted to take two other buildings that were not even mortgaged. I very much want to go to Federal Court as a group. These indiviuals destroy lives!

    my email is m.lalena.d.m@gmail.com

    Comment by archele' Lalena Davis-Mabry — April 16, 2011 @ 7:37 pm

15. Harris Bk / Bayview Capitol are the scum of the earth. The Bank of Montreal hides behind Harris Bank (Chicago) and they hide behind Bayview. Bayview deceives and lied to me. I will NEVER do business with those greedy buzzards again. I NEVER asked them to be my bank.

    Comment by louis gander — May 3, 2011 @ 2:20 pm

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