The former owner of an eastern Iowa mortgage servicing company will spend more than eight years in federal prison on fraud charges. Sixty-six-year-old Thomas Richard Jager of Bettendorf pled guilty to four counts of wire fraud in connection with his Davenport business Whitehall Funding Incorporated.
Jager admitted to taking payments from investors, filing false reports and depositing the money into his own account from 2007 through 2010. His company handled loans from the Department of Housing and Urban Development (HUD). Jager admitted to being responsible for more than $7 million in losses. He would have received $18,000 in legitimate fees for servicing the loans.
Evidence at his trial showed he spent the stolen money to pay his own credit card bill, purchase a hot tub, the purchase of vehicles, a country club membership and other personal items. He was sentenced to 97 months in federal prison and was also ordered to pay restitution to victims and forfeit personal property.