A Bettendorf man made an initial appearance Monday in U.S. District Court, Davenport, facing charges of wire fraud and money laundering, according to federal prosecutors.
Thomas Richard Jager, 64, has been indicted on 32 counts of wire fraud and one count of money laundering. U.S. Magistrate Judge Thomas J. Shields set trial for Jan. 7.
The indictment claims that starting about January 2008 and continuing to July 2010, Jager and his mortgage servicing company, Whitehall Funding Inc., then located in Davenport, devised a scheme to defraud mortgage pools serviced by Jager and Whitehall. Jager drafted and faxed false remittance reports to investors in the mortgage pools and submitted false end-of-the-year reports to mortgagors.
The indictment also claims Jager improperly transferred funds received from mortgagors to Jager’s personal accounts, and in one instance, used mortgagor and investor funds to make a payment of $137,660.97 to pay off Jager’s own home equity loan.
If convicted, Jager faces a penalty on each wire fraud count of up to 30 years imprisonment and a $1 million fine. If convicted on the money laundering count, Jager faces a penalty of up to 10 years imprisonment and a $250,000 fine.
This case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa and is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development.