Orange Co. man sentenced for $100M mortgage fraud

Orange County man sentenced to year in prison for role in $100 million mortgage fraud scheme

Associated Press

SAN DIEGO (AP) -- 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.

View Comments (11)