Businessman Admits Guilt in Loan Financing Scam

Allison Tussey —  May 2, 2012 — Leave a comment

John Partin, 67, appeared before U.S. District Judge Michael R. Hogan on April 23, 20102, and pleaded guilty to conspiracy to commit bank fraud and loan application fraud. The charge arose out of the collapse of Desert Sun Development (DSD), a development and construction company in Bend, Oregon.

As part of his guilty plea, Partin admitted that he caused financial institutions to lose more than $6 million. Sentencing is set before U.S. District Court Judge Michael R. Hogan on October 9, 2012 at 10:00 a.m.

According to court documents, Partin owned and operated Advanced Steel Systems Inc. (Advanced Steel), an Oregon corporation located in Bend, Oregon, that sold steel building kits for commercial construction projects. In court, Partin admitted that he, at the request of DSD principals, provided fictitious contracts and invoices for steel building kits and related costs that DSD principals used to obtain financing and loan proceeds for some of DSD’s commercial projects. Partin knew DSD principals were submitting these fraudulent contracts and invoices to financial institutions to obtain financing and loan proceeds. To keep track of the fraudulent invoices, defendant maintained an invoice log in which many of these false invoices were labeled “dummy” or “dummy invoice.”

Co-defendants Shannon Egeland, Jeremy Kendall, and Tyler Fitzsimons have previously pleaded guilty and are pending sentencing.

Conspiracy to commit bank fraud carries a maximum sentence of five years in prison and a $250,000 fine.

This case was investigated by the FBI, IRS-Criminal Investigations, and the Oregon Division of Finance and Corporate Securities. Assistant U.S. Attorney Scott E. Bradford handled the prosecution of the case.

Allison Tussey

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