Orange Co. Man Sentenced 1yr. for $100M Mortgage Fraud

[Ichingcarpenter]

An Orange County man who took part in a $100 million mortgage fraud scheme has been sentenced to a year in federal prison.

The U.S. attorney's office says John Allen was sentenced Monday in San Diego. He's one of five people who had pleaded guilty to crimes ranging from conspiracy to wire fraud and money laundering.

Authorities say Allen, a Laguna Hills mortgage loan processor, was involved in a scheme that involved recruiting straw buyers for homes, then arranging $100 million in mortgages at inflated prices, with about $15 million going into the conspirators' pockets.

Allen helped create phony documents to obtain the loans.

Nearly all of the homes later fell into foreclosure

http://abcnews.go.com/Business/wireStory/orange-man-sentenced-100m-mortgage-fraud-20275319

So 5 people involved with ripping off $100 million and netting $15 million and 1 guy gets 1 year?

I wonder what the other 4 got?

[DetlefK]

1. I said it once, I say it again:

A mandatory minimum sentence of 1 year jail-time per $1million involved.

[Nye Bevan]

4. So 5 weeks for someone who steals $100,000? (nt)

[DetlefK]

6. Not quite ;-) That rule would only apply to crimes involving at least $1million.

[Hassin Bin Sober]

2. I suspect/hope he received a lenient sentence for cooperation.

A "loan processor" would be the low man/woman in the hierarchy. The realtor, loan officer, and appraiser would be the main actors.

[hobbit709]

3. Holding up a convenience store gets you 5-10

TANJ.

[Logical]

5. Great point! nt

[Ichingcarpenter]

7. The $100 million loss is not the only damage

The theft also damaged the tax base which in turn damaged, schools, teachers, parks and other public jobs and infrastructure..