DreamLife founder ordered to pay $6.7 million in restitution

A former mortgage broker who was convicted of defrauding homeowners seeking cash-out refinance loans has been ordered to repay $6.7 million to his victims, the Modesto Bee reported.

Tony J. Daniloo, the founder of Modesto, Calif.-based DreamLife Financial, was sentenced by a federal judge last month to nine years in prison. Daniloo, 32, will be released in 7 1/2 years because his sentence in the federal case will run concurrently with a state conviction he'd already served time on.

Daniloo's plea bargain with state prosecutors last year included a six-year, eight-month prison sentence and an order to pay $1.34 million in restitution.

Before founding DreamLife, Daniloo managed a Dublin, Calif., branch office of Residential Credit Corp. from 2000 to 2002.

He raised DreamLife's profile by pledging $1 million to the California State University, Stanislaus athletic department, which briefly renamed its basketball stadium "DreamLife Arena" before Daniloo's company was shut down. DreamLife was a finalist for naming rights to the San Francisco 49ers' football stadium in 2004.

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