The Office of the U.S. Attorney sentenced a Twin Lakes, Wisc., man now living in Ojai, Calif., to 14 months in federal prison for his part in a mortgage fraud scheme that spanned from 2004 to 2006. He faced a total of 30 years in prison for these offenses. According to the indictment, the man, acting as a mortgage broker, orchestrated a scheme which involved straw buyers, fraudulent loan applications and inflated appraisals. He was able to arrange in excess of $14 million in loans for the purchase of approximately 51 properties located in southeastern Wisconsin and northern Illinois. More than $2 million of the loan proceeds wired by the various lenders were funneled to shell companies that the man established.

In connection with the scheme, the man represented himself as a person involved in the purchase and improvement of real estate for profit and the coordinator of a group of investors engaged in that activity. All but a few of the properties ultimately went into foreclosure resulting in a loss of more than $5 million. The money laundering counts alleged that ill-gotten loan proceeds were used, in part, for the purchase of additional properties and for personal expenses, including his purchase of a new Chevrolet Corvette.