A Johnson County man has been sentenced to 78 months in federal prison on bank fraud charges.

U.S. Attorney Barry Grissom says Paul L. Hartfield, 56, of Overland Park was also ordered to pay approximately $2.6 million.

Hartfield pleaded guilty in July of 2011 to one count of conspiracy to commit bank fraud and money laundering.

 

Hartfield was indicted Nov. 4, 2010. The indictment alleged Hartfield owned two businesses in Overland Park: Hart Investments, Inc., and Diamond Mortgage, both in Overland Park. Hart Investments purchased depressed properties in order to rehabilitate the properties and sell them at a profit. Hartfield obtained loans to rehabilitate homes on a “subject to appraisal” basis that allowed him to withdraw money as rehabilitation progressed. Starting in October 2006, Hartfield stopped rehabilitating houses. Instead, he and others made false representations to lenders in order to fraudulently obtain loan funds.

Co-defendant John T. Bradfield is set for sentencing Jan. 7; co-defendant Brian D. Jaimes is set for sentencing Dec. 17. Co-defendant Kevin M. Mahoney is set for sentencing Jan. 7. All three co-defendants pleaded guilty.