Real estate developer sentenced in mortgage fraud case

U.S. District Judge Robert N. Chatigny sentenced Niantic resident John J. Doran, a builder and construction manager of high end properties, to 12 months and one day in prison, followed by five years of supervised release, for making false statements to influence a bank in connection with a mortgage application.

Doran, 64, formerly of Deep River, must serve the first six months of his supervised release on home confinement under electronic monitoring. He had pleaded guilty on April 4.

According to the U.S. Attorney’s office, Doran submitted a false individual tax return to JP Morgan Chase in 2005 in connection with a $500,000 refinance loan application. The tax return indicated that his adjusted gross income for 2003 was $296,735 when, in fact, the actual 2003 tax return he filed with the Internal Revenue Service showed an adjusted gross income of -$81,911.

In March 2007, Doran 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.

In May 2007, Doran applied to Bank of America for a mortgage to purchase a condominium in New Haven. In connection with the application, Doran submitted a false individual tax return that indicated that his adjusted gross income for 2004 was $464,197 when, in fact, his actual 2004 tax return showed an adjusted gross income of -$69,298. Doran also submitted to the bank a fictitious sale contract for his personal residence in Deep River and a false bank statement.

Doran subsequently defaulted on the three loans.

As part of his sentence, Judge Chatigny ordered Doran to pay restitution of $991,883.65.

This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney David T. Huang.

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