Two top executives at Long Island mortgage lender Vanguard Funding, LLC, have admitted to orchestrating an $8.9 million fraud that gutted warehouse loans meant for home financing. Edward J. Sypher, Jr., 41, of Scarsdale, New York, and Matthew T. Voss, 42, of Northport, New York, pleaded guilty earlier today in federal court in Central Islip to conspiring to commit wire and bank fraud. Their scheme unraveled after they falsely claimed loan proceeds would fund client mortgages—then siphoned the cash for personal use.
The guilty pleas, entered before United States District Judge Sandra J. Feuerstein, expose a brazen betrayal of trust at the highest levels of Vanguard. As Chief Financial Officer, Sypher and Chief Operating Officer Voss exploited their authority to redirect millions in short-term warehouse financing—money banks extended based on the promise it would fund real estate loans. Instead, the duo used the funds to cover personal expenses, enrich themselves, and bury prior fraudulent debts.
Court filings reveal the fraud ran from August 2016 to March 2017. During that period, Voss and Sypher submitted false documentation to lenders, assuring them Vanguard was funding legitimate mortgage deals. Once the loans cleared, the money vanished into unauthorized channels. The deception allowed them to temporarily mask financial rot within the company while lining their own pockets with stolen capital.
When sentenced, each defendant faces up to 20 years in federal prison. They also face full restitution, criminal forfeiture of assets tied to the fraud, and steep fines. The case was announced by Richard P. Donoghue, U.S. Attorney for the Eastern District of New York, FBI Assistant Director-in-Charge William F. Sweeney, Jr., and Maria T. Vullo, Superintendent of the New York State Department of Financial Services.
Prosecution is being led by the Business and Securities Fraud Section of the U.S. Attorney’s Office. Assistant U.S. Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are handling the case, building on evidence gathered through bank records, internal company communications, and forensic accounting.
EDWARD J. SYPHER, JR., E.D.N.Y. Docket No. 18-CR-028 (SJF), and MATTHEW T. VOSS, E.D.N.Y. Docket No. 18-CR-027 (SJF), now await sentencing. Their fall marks another blow to the shadowy corners of the mortgage industry where greed masquerades as finance—and accountability eventually catches up.
Related Federal Cases
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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