Michael Hild (BizSense file)
A federal judge in Manhattan has shed new light on how much in criminal restitution embattled Richmond businessman Michael Hild might have to fork over.
U.S. Magistrate Judge Katharine Parker last week recommended that Hild should pay a total of $46 million to be divvied out to a group of lenders and the bankruptcy estate of his now-collapsed company, Live Well Financial.
The restitution would be penance for Hild’s conviction for defrauding the lenders through a scheme that intentionally overinflated the value of Live Well’s reverse mortgage bonds, which it used to borrow more tens of millions of dollars.
The scheme led to the collapse of the once-fast-growing Chesterfield-based company as well as Hild’s arrest, trial and conviction. He’s been sentenced to serve 44 months in federal prison but has remained free on bond while appealing the guilty verdict.
Judge Parker’s recommendation stems from a long-running legal argument between federal prosecutors and Hild’s defense team over how much his restitution tab should be.
The U.S. Attorney’s Office initially called for $69 million, while Hild argued that the figure should be far less or even zero.
With both sides at odds for nearly two years, U.S. District Judge Ronnie Abrams, who has overseen Hild’s criminal case, passed the restitution matter on to Parker, who gathered evidence and heard testimony from Hild’s five victims: Industrial and Commercial Bank of China, Flagstar Bank, Mirae Asset Securities, Customers Bank and the bankruptcy estate of Hild’s former mortgage company, Live Well Financial.
The federal courthouse in Manhattan where Hild’s case has played out. (BizSense file)
Parker ultimately said a “reasonable estimate” of the restitution Hild owes is $46.45 million.
That total includes $17.79 million for ICBC, $13.36 million for Flagstar, $7.39 million for Mirae, $7.64 million for Customers Bank and $253,000 for the Live Well estate.
Parker’s recommendation came despite Hild’s arguments that no restitution should be owed to Flagstar, Mirae and Customers Bank. He claimed that they and ICBC benefited financially from holding the bonds and reaping the interest payments after they essentially foreclosed on those bonds as collateral for the loans to Live Well.
The lenders maintained they were harmed even after receiving some interest payments. Parker agreed.
“After the collapse of Live Well Financial … the victims were stuck with collateral that few market participants wanted to touch,” Parker said in her Feb. 20 recommendation. “It is not the victim’s fault that following the collapse of Live Well Financial, the artificially inflated assets of the company were unattractive to potential purchasers.”
The restitution recommended for the Live Well estate is related to legal expenses and other costs incurred in dealing with Hild’s long-running legal case.
With Parker’s recommendation now in the court record, the ultimate decision on Hild’s restitution is in Abrams’ hands. She has yet to rule on the matter.
A message left for Hild’s attorney, Brian Jacobs of the New York law firm Morvillo Abramowitz Grand Iason & Anello, was not returned by press time.
Some share of the restitution also will likely apply to Hild’s co-conspirators, former Live Well executives Eric Rohr and Darren Stumberger. They were charged alongside Hild in 2019 but pleaded guilty and agreed to cooperate with the prosecution and serve as key government witnesses in Hild’s trial.
As part of their conviction, Rohr and Stumberger were ordered to pay restitution to Live Well’s lender victims. Should Abrams memorialize the $46 million recommendation, it’s unclear what percentage Hild, Rohr and Stumberger would each have to pay.
Hild’s appeal, meanwhile, is ongoing. He’s asked for the verdict and his 44-month sentence to be overturned. That case is playing out in the U.S. Court of Appeals for the 2nd Circuit.
Michael Hild (BizSense file)
A federal judge in Manhattan has shed new light on how much in criminal restitution embattled Richmond businessman Michael Hild might have to fork over.
U.S. Magistrate Judge Katharine Parker last week recommended that Hild should pay a total of $46 million to be divvied out to a group of lenders and the bankruptcy estate of his now-collapsed company, Live Well Financial.
The restitution would be penance for Hild’s conviction for defrauding the lenders through a scheme that intentionally overinflated the value of Live Well’s reverse mortgage bonds, which it used to borrow more tens of millions of dollars.
The scheme led to the collapse of the once-fast-growing Chesterfield-based company as well as Hild’s arrest, trial and conviction. He’s been sentenced to serve 44 months in federal prison but has remained free on bond while appealing the guilty verdict.
Judge Parker’s recommendation stems from a long-running legal argument between federal prosecutors and Hild’s defense team over how much his restitution tab should be.
The U.S. Attorney’s Office initially called for $69 million, while Hild argued that the figure should be far less or even zero.
With both sides at odds for nearly two years, U.S. District Judge Ronnie Abrams, who has overseen Hild’s criminal case, passed the restitution matter on to Parker, who gathered evidence and heard testimony from Hild’s five victims: Industrial and Commercial Bank of China, Flagstar Bank, Mirae Asset Securities, Customers Bank and the bankruptcy estate of Hild’s former mortgage company, Live Well Financial.
The federal courthouse in Manhattan where Hild’s case has played out. (BizSense file)
Parker ultimately said a “reasonable estimate” of the restitution Hild owes is $46.45 million.
That total includes $17.79 million for ICBC, $13.36 million for Flagstar, $7.39 million for Mirae, $7.64 million for Customers Bank and $253,000 for the Live Well estate.
Parker’s recommendation came despite Hild’s arguments that no restitution should be owed to Flagstar, Mirae and Customers Bank. He claimed that they and ICBC benefited financially from holding the bonds and reaping the interest payments after they essentially foreclosed on those bonds as collateral for the loans to Live Well.
The lenders maintained they were harmed even after receiving some interest payments. Parker agreed.
“After the collapse of Live Well Financial … the victims were stuck with collateral that few market participants wanted to touch,” Parker said in her Feb. 20 recommendation. “It is not the victim’s fault that following the collapse of Live Well Financial, the artificially inflated assets of the company were unattractive to potential purchasers.”
The restitution recommended for the Live Well estate is related to legal expenses and other costs incurred in dealing with Hild’s long-running legal case.
With Parker’s recommendation now in the court record, the ultimate decision on Hild’s restitution is in Abrams’ hands. She has yet to rule on the matter.
A message left for Hild’s attorney, Brian Jacobs of the New York law firm Morvillo Abramowitz Grand Iason & Anello, was not returned by press time.
Some share of the restitution also will likely apply to Hild’s co-conspirators, former Live Well executives Eric Rohr and Darren Stumberger. They were charged alongside Hild in 2019 but pleaded guilty and agreed to cooperate with the prosecution and serve as key government witnesses in Hild’s trial.
As part of their conviction, Rohr and Stumberger were ordered to pay restitution to Live Well’s lender victims. Should Abrams memorialize the $46 million recommendation, it’s unclear what percentage Hild, Rohr and Stumberger would each have to pay.
Hild’s appeal, meanwhile, is ongoing. He’s asked for the verdict and his 44-month sentence to be overturned. That case is playing out in the U.S. Court of Appeals for the 2nd Circuit.
After installing the solar equipment and doing weeks of work for his Anderson’s Neck Oyster Farm, he refused to pay. He was such a troll of a human being. I don’t understand why he has ANY money left to pay for restitution. Michael, if you read this, just know that karma is a B***h!
Wow, when did all this happen? Are you taking him to court?
Hild blogged about bringing solar power in on the Anderson’s Neck website: https://andersonsneck.com/solar-is-power/
He left out the part where he refused to pay, but that is to be expected.