Aug
Developer with “Brain Damage” Defense Sentenced to 70 Months in Prison
An attorney failed to convince a federal judge that his client should serve less time in prison because he suffered from “brain damage, bipolar disorder and “mild” schizophrenia” and committed his crimes on the advice of “aliens and spirits.”
David Papera had pleaded guilty to defrauding Washington Mutual, aka WaMu, (mortgage fraud, loan fraud) by submitting millions of dollars in loan applications from straw buyers, who were to purchase parcels near Lake Hennessey in Napa from the Sage Creek Ranch, LLC development company that Papera owned with his Michael Ohayon.
Last April, Papera pleaded guilty to conspiracy to commit bank fraud and money laundering and despite his attorney Steven Gruel’s pleas, was sentenced by U.S. District Court Judge Charles R. Breyer to 70 months in prison. Michael Ohayon, who in May pleaded guilty to conspiracy to commit bank fraud, bank fraud and money laundering, was sentenced to 60 months. Both men were ordered by Judge Breyer to pay $10.5 million in restitution to Chase Home Finance, Washington Mutual’s successor.
The investigation was conducted jointly by the Internal Revenue Service, Criminal Investigation Division and the FBI.
Read the original article in the Napa Valley Register.
