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Posted by: Maricopa Lawyers on Jun 17, 2014

A federal jury has found a former-Arizona home builder and his accountant guilty of bank fraud and conspiracy. The sentence ties back to a mortgage scam that occurred over the course of four-and-a-half years.

The jury deliberated over the course of 24 hours across 12 days before handing down the verdict. Paxton Anderson and Joseph Plany are now awaiting a potentially hefty sentence following convictions across 25 and 22 counts, respectively, relating to bank fraud. Both men have been convicted on one count of conspiracy to commit bank fraud.

Anderson will be penalized with anywhere between 14 – 17 years in prison, Plany’s sentence is estimated between  11 – 14 years. The final sentencing phase is scheduled to take place later this summer.

As outlined by prosecuting attorney Kevin Rapp, both defendants stood accused of defrauding M&I Bank, Tier One Bank, Regions Bank and additional lenders. Anderson and Plany were able to extract millions of dollars stemming from loans awarded toward the construction of luxury homes in Arizona.

The scheme was considered deceptively simple by prosecutors. The men would extrapolate money from the bank, report the money was used to build homes without spending it, give a portion of the money back to the bank to satisfy mortgage payments and use the remaining balance as a personal spending account.

In order to continue loan approval, the men would enlist friends and family members to pose as potential home buyers and manipulate the corresponding bank account. The business partners would often forge signatures and create falsified invoices to perpetuate the fraud. Anderson and Plany could have potentially continued their operation for longer if key associates weren’t pressured into plea deals to testify against the men.