The former chief executive officer of a California mortgage company was arrested Thursday on wire fraud and other charges after he was accused of defrauding lenders out of more than $9 million.

Kenneth Ketner, 57, of Newport Beach, Calif., was named in a 14-count indictment by a federal grand jury alleging that he funneled money meant for borrowers to his now-defunct company, Mortgage Capital Resources, Assistant United States Attorney Andrew Stolper said.

The indictment said Ketner entered into lending agreements with various financial institutions that allowed MCR to originate loans on their behalf. Once the loans were approved, the lenders would transfer the money to Mortgage Capital to disburse to borrowers. But, the indictment said, often the borrowers never got the money.

Among other things, the indictment alleges that Ketner misdirected lenders’ funds to Ferrari of Orange County to help pay for a new $244,000 Ferrari. The indictment also alleges that Ketner took some of the proceeds and laundered it through offshore accounts.

Allen Johnson, 59, a Newport Beach, Calif., lawyer was indicted with Ketner. The indictment said the two are friends who acted together to perpetuate the fraud.


Send tips or a Letter to the Editor to or call (510) 658-9252, ext. 140.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription