Johnson County Man Sentenced on Bank Fraud Charges
|U.S. Attorney’s Office January 15, 2013|
KANSAS CITY, KS—A Johnson County man has been sentenced to 15 months in federal prison on bank fraud charges, U.S. Attorney Barry Grissom said today. He was ordered to pay approximately $1.3 million restitution.
John T. Bradfield, 55, Overland Park, Kansas, pleaded guilty to one count of conspiracy to commit bank fraud. In his plea, he admitted he conspired with co-defendant Paul Hartfield to make false representations to lenders in order to fraudulently obtain funds from mortgage lenders.
Hartfield owned two businesses in Overland Park: Hart Investments Inc. and Diamond Mortgage, both in Overland Park. Bradfield was the director of Operations of Hart Investments. Hart Investments purchased depressed properties in order to rehabilitate them and sell them at a profit. Hart Investments obtained loans to rehabilitate homes on a “subject to appraisal” basis that allowed the company to withdraw money as rehabilitation progressed. Starting in October 2006, Hartfield stopped rehabilitating houses. Instead, he, Bradfield and others made false representations to lenders in order to fraudulently obtain loan funds.
For instance, on September 19, 2007, Bradfield prepared a cost sheet used by a lender to loan money for a subject-to-appraisal loan for 3409 Holmes in Kansas City, Missouri. On November 2, 2007, Bradfield submitted a false draw in the amount of $35,700. He provided the lender with two fraudulent invoices for work not completed on the house.
- Paul Hartfield, who was sentenced to 78 months in federal prison and ordered to pay $2.6 million restitution.
- Brian D. Jaimes, who was sentenced to 24 months.
- Kevin M. Mahoney, who is set for sentencing January 28.
Grissom commended the FBI, the Internal Revenue Service, the FDIC-Office of Inspector General, Assistant U.S. Attorney Jabari Wamble, and Assistant U.S. Attorney David Smith for their work on the case.