NEWARK, N.J. – A federal judge has agreed to transfer Michael McGrath, sentenced to 14 years behind bars for the theft of $140 million in credit union mortgages, from a Pennsylvania prison to a minimum security facility in Jessup, Ga.., so he can be closer to his wife and daughter who live in South Carolina and Florida.
The 46-year-old McGrath, convicted of fraud in the sale of the credit union loans to Fannie Mae, is scheduled to enter prison April 18.
McGrath, who was president of U.S. Mortgage Corp., the parent of CU National Mortgage, will serve at least 12 years of a 14-year prison term. U.S. Mortgage and its CU National unit filed for bankruptcy in February 2009 as the Feds were closing in on the McGrath fraud.
Most of the 28 credit union victims of the fraud have received compensation for their losses but a half-dozen of the biggest victims are still fighting to recover lost funds from Fannie Mae.
