A Tucson real estate developer and a real estate agent were sentenced to federal prison for their roles in a mortgage fraud scheme.
William Michael Naponelli, 69, and Bryan Atwood, 52, were accused of fraudulently obtaining loans in 2006 and 2007 to buy properties that ultimately went into foreclosure, according to a news release from the U.S. Attorney’s Office in Arizona.
Naponelli, a former real estate developer and loan officer, pleaded guilty to conspiracy to commit bank fraud and conspiracy to commit transactional money laundering in December. He was sentenced to 24 months in prison on Sept. 23 by U.S. District Judge Cindy K. Jorgenson.
He admitted that he and a co-conspirator bought properties through their associated business entities and then sold them to straw buyers, the release said.
To purchase those properties, Naponelli submitted false loan documents and deposited the money into his and a co-conspirator’s bank accounts, the release said.
Atwood, a former real estate agent, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 15 months in prison on Friday.
He admitted using false loan documents to obtain three properties.
Naponelli was ordered to pay $3.1 million in restitution and Atwood was ordered to pay $585,000.
Other co-conspirators, Walter Scott Fruit, a former real estate agent, and Sandra Jackson, a former escrow agent, were previously sentenced to prison.