The former chief executive of bankrupt mortgage lending company, Homegold, one Ronald Sheppard was sentenced this week to 20 years on charges of conspiracy, securities fraud and obtaining property by false pretenses. He had faced a potential maximum of 25 years in the case.

Homegold had attempted to cover large losses by funneling in cash from a subsidiary. $275 million and 8,000 defrauded investors later the company collapsed. Four other Homegold execs have already been convicted. Former chairman John Sterling Jr. has been indicted and is awaiting his turn at bat.

Check here for further details on Sheppard, who claims to be a victim in all this. That's a hard pill to swallow when you picture him shredding all those documents to cover his own ass.

-- MDT

Labels: Fraud, Homegold, John "Jack" Sterling. Jr., lending, Ronald Sheppard