Donald Totten, a one-time real estate agent, has been sentenced to 30 months in prison by U.S. District Judge Michael M. Anello. He had pleaded guilty last February to four felony counts relating to his mortgage fraud, tax, and bankruptcy frauds.
Totten ran his businesses, under the names of AS Money World, Island Financial, and Integrated Home Loans, and according to court documents, made millions of dollars recruiting people to refinance their mortgages with him by running television commercials. His loan programs were called “adjustable rate negative-amortization loan.” Negative amortization loans allow the borrower to make less than the minimum monthly payment but this results in the principle balance increasing.
“Prosecuting people who have contributed to the mortgage meltdown is one of my top priorities because they have played such a significant role in our nation’s financial turmoil,” said U.S. Attorney Laura Duffy. “My office will not allow individuals to make themselves rich at the expense of the American people and the taxpayers. I am pleased to report that this defendant’s decade-long crime spree is finally over.”
There’s much more to the story of Donald Totten. You can read previous postings about him in the California Real Estate Fraud Report.
Read the original article in the Rancho Santa Fe Review.