A man who wrote false invoices pleaded guilty in federal court on April 23 to one count of conspiracy to commit bank fraud in a $19 million loan fraud case connected to a now-defunct Bend development company.
John Partin, who owned a Bend company called Advanced Steel Systems, admitted to providing Desert Sun Development with false contracts and invoices so the company could get financing for construction projects that never began.
As part of his guilty plea, Partin admitted he’d caused financial institutions to lose more than $6 million.
Desert Sun Development built residential and commercial developments across Central Oregon. According to a 2009 federal indictment, the company’s success was largely the result of mortgage fraud.
The company allegedly deposited money into the accounts of some of its employees, allowing them to receive loans they otherwise would not have qualified for. The company also allegedly obtained loans by providing false documentation to lenders.
In total, documents claim the company conspired to defraud six financial institutions out of $19 million.
Thirteen people associated with the company have been indicted, and Partin is the eighth defendant to plead guilty to charges.
Partin will be sentenced in October. The maximum sentence is five years in prison and $250,000 in fines.