2002-05-21 -- Mannis, Robert -- Guilty Plea -- News Release

Former Mortgage Company Company Executive Admits False Statements to Bank

NEWARK - A former executive of a Ramsey-based mortgage brokerage firm pleaded guilty today to making false statements to a bank, U.S. Attorney Christopher J. Christie announced.

Robert Mannis, 43, of Woodbury, Conn., the former managing director of Parmann Mortgage, pleaded guilty before U.S. District Judge Alfred M. Wolin, and admitted sending a false statement to a bank in conjunction with a line of credit obtained by Parmann to fund mortgages for its customers.

According to his statements in court today, Parmann had a $40 million line of credit from PNC Bank that was used by Parmann to fund mortgages. Parmann sold a number of its mortgages to the Federal National Mortgage Association ("Fannie Mae"), and when it did, it was supposed to forward the funds from the mortgage sales immediately back to PNC to repay the line of credit.

However, Parmann fell behind in making its repayments to PNC, and ultimately the bank lost millions of dollars on the line of credit. In his plea agreement, Mannis stipulated that the loss does not exceed $10.34 million but has reserved the right to argue at sentencing that the loss is lower.

Mannis admitted that, to keep the bank from learning what was happening, he created false documents and submitted them to PNC. Mannis admitted his conduct was intended to create the impression that Parmann was on time with its payments to the bank.

When he is sentenced by U.S. District Court Judge Alfred M. Wolin, Mannis faces a maximum prison sentence of 30 years and a maximum fine of $1 million. Judge Wolin set sentencing for Sept. 4 at 10 a.m.

Under U.S. Sentencing Guidelines, Judge Wolin will determine the actual sentence based on a formula that takes into account the severity and characteristics of the offense and the defendant's criminal history, if any. Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Phillip W. Thomas, with developing the case against the Mannis.

The Government is represented by Assistant U.S. Attorney Mark Winston, of the U.S. Attorney's Fraud and Public Protection Division in Newark.

-end-

Defense Counsel:

Arthur Zucker - Hackensack