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.