John Mohan, 38, Delray Beach, Florida, was sentenced to 33 months’ imprisonment. As previously reported on Mortgage Fraud Blog, in September, 2008, Mohan pled guilty to a one-count Information charging him with wire fraud in connection with a scheme to misappropriate more than $1.2 million in client funds purportedly held in escrow for authorized real estate transactions and related expenses.

According to the Information, court documents, and statements made in court, Mohan worked as a mortgage broker and closing agent who assisted buyers in real estate transactions. As the closing agent, Mohan would collect funds from buyers and lenders, and would represent to the parties engaged in the transaction that these funds were being held in escrow to be disbursed for various specified purposes, including the satisfaction of pre-existing mortgages. In fact, Mohan misappropriated the escrowed funds for his personal use and to make additional personal investments. Over the course of the scheme, Mohan misappropriated more than $1.2 million in client funds. In an effort conceal the fraud and prevent immediate foreclosure of the property, Mohan would sometimes make some payments on the homeowner’s original mortgage.