U City Mortgage Banker Pleads Guilty in Multi-Million Dollar Fraud Scheme

A University City mortgage banker has pleaded guilty to his role in a multi-million dollar securities fraud, according to a news release from the United States Attorney's Office, Eastern District of Missouri.

At the time of the alleged scam, Matthew Kent, 41, was vice president and co-operator of the University City office of the Coral Mortgage Bankers Corporation. He has pled guilty to one felony count of wire fraud. He'll be sentenced in February. Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000.

According to court documents, between May 2007 and December 31, 2010, Kent, his partner in Coral Mortgage David Rubin of Chesterfield, and Joshua Gould of University City, formerly of Woodbury Financial, embezzled approximately $1,500,000 from a retiree solicited by Rubin to provide funds for operating capital for Coral’s St. Louis operations. The individual was assured that the funds would not be spent, would be held in a secure trust account, used only as collateral for Coral’s operations, and that the individual would receive regular interest payments.

Court documents state that Rubin and Kent used approximately $250,000 of the man's money for operating expenses, including payment of their own salaries, and transferred the balance to Gould who used the money for personal expenses including, jewelry, and adult entertainment.

Rubin and Gould previously pled guilty. Gould was sentenced in July to 8 years in prison and ordered to make restitution to the victims in the amount of $4,323,092. Rubin will be sentenced in January.