Ronald J. McCord Sentenced for $14M Mortgage Fraud

OKLAHOMA CITY – In a stunning turn of events, 71-year-old Ronald J. McCord, former President of First Mortgage Company (FMC), was sentenced to 104 months in federal prison for orchestrating a $14 million mortgage fraud scheme. The sentence also mandates he pay over $51.8 million in restitution to his victims.

Acting U.S. Attorney Robert J. Troester branded McCord’s actions as a ‘carefully calculated scheme’ that defrauded local banks, homeowners, and financial institutions. McCord stood guilty of bank fraud, money laundering, and making false statements to a financial institution.

Mccord, who was the Chairman of FMC, admitted to selling over $14 million in loans “out of trust” and diverting escrow monies meant for homeowners’ taxes and insurance premiums to cover his company’s operating expenses. He also confessed to laundering proceeds by transferring funds to a custom home builder for his vacation home.

The investigation revealed that McCord had caused a total loss exceeding $95 million, prompting the termination of future warehouse lending to FMC by Spirit/Mortgage Corp. and Citizens/Funding Corp.

McCord’s fraudulent activities came to light after an independent audit and were further compounded when he made false statements during negotiations with CapLOC, LLC, seeking quick funding for FMC.

Judge Robin J. Cauthron found that McCord’s actions resulted in a substantial loss to local banks, financial institutions, and borrower homeowners, solidifying his conviction and sentence.