6 Years For Defrauding Lenders Of $80 Million

MINNEAPOLIS (AP) — A federal judge in Minneapolis has sentenced a man to 6 years in prison for defrauding 18 lenders of $80 million.

Forty-one-year-old Corey Johnston of Lakeville was sentenced on one count of bank fraud and one count of filing a false income tax return. As part of a plea agreement, Johnston admitted operating a Ponzi scheme in which he oversold participation in large commercial and personal loans by his company, First United Funding. He was accused of selling loan participation to banks after already selling that same participation to other banks and failing to disclose the total participation exceeded 100 percent of the original loan.

Johnston will also be ordered to pay restitution.

  • warren

    …6 years in prison for defrauding 18 lenders of $80 million… slap on the wrist.

    • HAHA

      So Petters gets 50 years and this guy gets 6 huh? No there is no bias in the legal system. So you think he gets a better deal cut because of being a judge? In my mind he should get a longer sentence as he knew everything he was doing was illegal (at least he should have or he was bad at his job). Lead by example has been thrown out the window.

      • Mitchell

        Wait, what?! What the hell are you talking about? This guy wasn’t a judge… where are you seeing that he was a judge?

        • HAHA

          Thank you for pointing that out, I read that too fast and thought it said a federal judge was sentenced, not a federal judge sentenced him. Thank you for pointing that out to me as this was a mistake. I take my comment back.

  • Ginny

    Does he get to keep the money too!
    What a mockery our laws are.

    • Mitchell

      “Johnston will also be ordered to pay restitution.”

      Learn to read.

  • CJG

    omg. I am done with being honest. stupid frickin banks and anybody who believed in this guy.

  • lib

    That’s about a million three per year with no income tax, not a bad gig.

  • Kent

    What the….

  • Paula

    Should have gotten life. White collar crime laws must change.

  • Artist36

    Whoever said crime didn’t pay was way off!

  • Thinking

    And Jim Bakker got 40 years for 3.4 million. Go figure.

  • Justice?

    This guy gets a 6 yrs for defrauding $80,000,000, while the “honorable” linda reade gives Sholom Rubashkin 27 yrs for a case where she needed to twist and turn to bump the crime up to $25,000,000. Ludicrous.

  • Keeping it real in Minnesota

    Funny how little guys like this guy get time for 80 mill. and companies that got bailed out by the feds had scammed billions from home buyers for years get nothing…..where is justice in all of it………..I guess the government doesn’t want to hit the big dogs too much, they contribute to political needs…can’t cut that off now can they.

  • CC

    IM so sick of the Laws in MN..What a fukkkken joke..He needs to be worked over in the Joint..IM angry..People get more time for DWI then this jerk..Let me have him 4 an hour..He never mind

  • Bob Watson

    My understanding is that Jerry Moyes of Phoenix received most of the money, as well as the process from the loans (which he was never credit worthy for, nor has any money he obtained been paid back???

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