Mortgage Broker Arrested For Pension Plan Fraud

Archived News Release — Caution: Information may be out of date.

Michael Ted McKendree, 39, of Corte Madera, Cal., was arrested today by Special Agents of the Federal Bureau of Investigation on an eleven-count indictment returned on December 2, 1998, by a Federal Grand Jury in San Francisco. McKendree was indicted for allegedly embezzling funds from a pension plan covered by the Employee Retirement Income Security Act of 1974 (ERISA) and for mail fraud.

McKendree was charged with one count of embezzling $430,000 from the Richmond Wholesale Meat Packing Profit Sharing Plan by brokering real estate loans to the Plan which were purportedly secured by deeds of trusts on real property.

According to the indictment, between March 1993 and October 1994, McKendree allegely furnished the Plan’s trustees and administrator with false and fraudulent deeds of trust. When mortgage payments on the loans were not forthcoming to the Plan, he allegedly exchanged and reassigned another lender’s deeds of trust to the Richmond Plan.

McKendree was also charged in the indictment with ten counts of mail fraud betwen March 1994 and October 1994 in connection with the alleged embezzlement.

This indictment resulted from a joint investigation conducted by the San Francisco Regional Office of the Pension and Welfare Benefits Administration, U.S. Department of Labor and the Federal Bureau of Investigation. The case is being prosecuted by the U.S. Attorney’s Office in the Northern District of California.

U.S. v. McKendree
Criminal Action RC 98=00-385 MJJ

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Archived News Release — Caution: Information may be out of date.

Contact Name: Mike Shimizu
Phone Number: 206.553.7620