Industry NewsMortgage

Former mortgage exec gets 13 years

FHA direct lenders defrauded government on 905 loans
Published on Feb 2, 2010

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by CareyBot

The former president of Hesperia, Calif.-based Mortgage One Corp. has been sentenced to 13 years in federal prison and ordered to pay nearly $30 million in restitution for what prosecutors said was his central role in a mortgage fraud scheme involving 905 FHA-backed loans.

John Richard Varner, 56, is among 15 defendants convicted to date in a mortgage fraud scheme involving U.S. Department of Housing and Urban Development-approved Direct Endorsement Lenders Mortgage One Corp. in Hesperia and M-1 Capital Corp. in Riverside and Rancho Cucamonga.

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