Vincent Farnsworth 2:38 p.m., Sept. 26
A year behind bars for mortgage loan fraud scam
Loan applications falsified
John Allen of Laguna Hills was sentenced today (Sept. 16) for participation in a mortgage scam. According to the U.S. Attorney's office, he solicited so-called investors who would become straw buyers of homes. Allen would falsify loan applications by claiming exorbitant income from fake employers.
Allen and other defendants raked in millions of dollars by convincing sellers to inflate the purchase price by $100,000 or more, allegedly to be used for improvements of the properties. But no construction work was performed and the money went into the defendants' bank accounts.
More like this:
- White-collar lash — June 1, 2015
- Mastermind of $100 million mortgage scam gets 8 years — Sept. 30, 2013
- Local mortgage banker lands 10 year prison sentence — Nov. 9, 2012
- Three Charged in Mortgage Loan Origination, Kickback Scheme — July 12, 2012
- Six Charged in Alleged $20.8 Million Mortgage Scam — May 20, 2010