Businessman Gets Hefty Sentence for Defrauding Lenders

Allison Tussey —  October 25, 2012 — Leave a comment

Paul L. Hartfield, 56, Overland Park, Kansas, has been sentenced to 78 months in federal prison on bank fraud charges.  He was ordered to pay approximately $2.6 million in restitution.

The defendant pleaded guilty to one count of conspiracy to commit bank fraud and money laundering.

Hartfield was indicted November 4, 2010. The indictment alleged Hartfield owned two businesses in Overland Park: Hart Investments Inc. and Diamond Mortgage. Hart Investments purchased depressed properties in order to rehabilitate the properties and sell them at a profit. Hartfield obtained loans to rehabilitate homes on a “subject to appraisal” basis that allowed him to withdraw money as rehabilitation progressed.

Starting in October 2006, Hartfield stopped rehabilitating houses. Instead, he and others made false representations to lenders in order to fraudulently obtain loan funds.

Co-defendant John T. Bradfield is set for sentencing January 7, 2013; co-defendant Brian D. Jaimes is set for sentencing December 17, 2012. Co-defendant Kevin M. Mahoney is set for sentencing January 7, 2013.

U.S. Attorney Barry Grissom annoucned the sentence.

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.

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Allison Tussey

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