John J. Doran of Niantic pleaded guilty in U.S. District Court today to making false statements to influence a bank in connection with a mortgage application.
Doran, 63, formerly of Deep River, faces up to 30 years in prison and a fine of approximately $1.9 million when he is sentenced June 25 by U.S. District Judge Robert N. Chatigny.
According to the office of U.S. Attorney David B. Fein, Doran applied to Bank of America for a mortgage to purchase a condominium in New Haven in May 2007. He submitted to the bank a false tax return that indicated that his adjusted gross income for 2004 was $464,197 when, in fact, the actual 2004 tax return Doran filed with the Internal Revenue Service showed an adjusted gross income of -$69,298. Doran also submitted a fictitious sale contract for his personal residence in Deep River and a false bank statement, according to the government.
In pleading guilty, Doran also admitted that, in March 2005, he submitted a false individual tax return in connection with a $500,000 refinance loan application with JP Morgan Chase. The tax return indicated that his adjusted gross income for 2003 was $296,735 when, in fact, his actual 2003 tax return showed an adjusted gross income of -$81,911. Doran also admitted that, in March 2007, he submitted false individual 2003 and 2004 tax returns in connection with a loan application to Wachovia Dealer Services to finance the purchase of a yacht.
As part of his plea agreement, Doran agreed to pay restitution of $991,883.65. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney David T. Huang.