Pennsylvania Investment Executive Convicted of Federal Fraud Charges

SCRANTON, PA – A federal jury has found James Mahon, IV, 66, of Shavertown, Pennsylvania, guilty of bank fraud and conspiracy to commit bank and wire fraud. The conviction stems from a scheme spanning over a decade, involving Tamac Holdings, a Wilkes-Barre company where Mahon served as Executive Vice President. The company specialized in originating mortgages for manufactured housing and subsequently selling these loan portfolios to banks and investors, while continuing to service the loans.

According to the United States Attorney’s Office for the Middle District of Pennsylvania, Mahon and other Tamac employees engaged in fraudulent practices from 2008 to 2021. Their actions included manipulating delinquency rates on loan portfolios by falsifying payment records. Additionally, they repossessed properties but failed to forward the proceeds from these sales to the banks and investors who held the loans. Further deceit was employed when Tamac executives provided inaccurate financial records to auditors, banks, and investors. This misinformation continued even when Tamac was sold to an investment firm in 2019, as executives misrepresented the true status of their loan portfolios. The Federal Bureau of Investigation conducted the investigation into this case, with Assistant United States Attorneys Joseph J. Terz and Geoffrey W. MacArthur leading the prosecution.

Mahon now faces significant penalties for his conviction. He is subject to a maximum prison sentence of 60 years, a fine of up to $500,000, and a period of supervised release. The final sentence will be determined by a judge, who will take into account the relevant federal sentencing statutes and the Federal Sentencing Guidelines.

This case highlights the serious consequences of financial fraud and the efforts of federal law enforcement to hold individuals accountable for such actions. Residents of the Middle District of Pennsylvania can be assured that federal authorities are actively investigating and prosecuting financial crimes that undermine the integrity of financial markets.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, Middle District of Pennsylvania

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