Bay Area Men to Serve Time for Money Laundering and Bank Fraud

Denizens of San Francisco — especially those who frequent pot clubs — might be a bit miffed with U.S. Attorney Melinda Haag. And despite how much you might love marijuana, perhaps you can still give credit where it's due.

Haag handed down sort-of stiff sentences to Michael Ohayon, 44, and David Papera, 50, who received 60 and 70 months in prison, respectively, for conspiracy to commit bank fraud and money laundering. They were also ordered to pay some $10.5 million in restitution, prosecutors said. 

Needless to say, it wasn't a difficult fight for the prosecution. Ohayon pleaded guilty to conspiracy to commit bank fraud and money laundering in May, and Papera pleaded guilty to conspiracy to commit bank fraud and money laundering in April.

Together, these guys created Sage Creek Ranch, LLC, to develop property in Napa County. According to a plea agreement, they milked Washington Mutual for $19.67 million in loans by submitting fraudulent loan applications under the names of people with good credit scores.

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