PHOENIX — Men from Minnesota and Texas have been sentenced to federal prison terms in a mortgage fraud case in Arizona.
A judge in Phoenix on Monday sentenced 44-year-old Paxton Jeffrey Anderson of Montevideo, Minnesota to eight years in prison and Joseph John Plany of Hutto, Texas, to four years.
Anderson and Plany were convicted of bank fraud in June, 2014 after a three-week jury trial.
According to the U.S. Attorney's Office for Arizona, the case stemmed from Anderson's work as a general contractor in Phoenix between 2004-2007 while Plany was his bookkeeper.
The office said trial evidence showed that Anderson, with help from Plany, made false representations to lenders to obtain construction loans for borrowers and that they used loan money for personal expenses instead of using it to build homes.