A jury in November found Kurlemann guilty of conspiracy to defraud the U.S. Government and loan and credit application violations. The jury also found Kurlemann committed bankruptcy fraud, concealment of assets and false oaths.
Kurlemann, accused scam artist Eric Duke, luxury home builder Bryan Sanneman and former Huntington National Bank vice president Terrence J. Monahan Jr. all entered pleas of not guilty but Kurlemann’s co-defendants later changed their pleas to guilty to the various loan and wire fraud charges.
Monahan was also sentenced on Friday to 18 months in prison and ordered to pay $264,000 in restitution.
The two “straw buyers,” Francisca Webster and Christopher Gagnon, were charged separately and also pleaded guilty for their part in the scheme to buy three homes in Long Cove in Deerfield Twp. and one home in River’s Bend in South Lebanon.
Webster, of Cincinnati, sued Duke in Hamilton County Common Pleas Court in 2006, claiming as her friend and tax adviser, he tricked her into buying two Long Cove homes and one in River’s Bend.
She said Duke told her she could get out of approximately $70,000 in debt if she loaned him her good credit by “buying” the houses, two of which had been Homearama show houses in Long Cove. He promised to re-sell the homes in three months, the lawsuit claimed.
Duke later sold one of the houses on a land contract, which wasn’t his to sell.
Webster’s civil case was eventually dismissed by the court.
Gagnon “bought” a mansion on Emerald Isle. His loan application stated he earned $61,500 a month and put down $280,000 in earnest money that was never actually paid to Kurlemann.
Prosecutors said the idea behind the scheme was to get the $1 million-plus homes sold, then flip them for a higher price. The plan backfired when the houses didn’t sell.
Sanneman was sentenced to a year and a day and ordered to pay $369,000 in restitution.
Gagnon was sentenced to a day in jail, probation and was ordered to pay $930,000 in restitution. Duke and Webster are to be sentenced this week.
Spokesman Fred Alverson said prosecutors would not comment until all the sentences were imposed. Kurlemann’s attorney issued a statement.
“Mr. Kurlemann firmly believes that his actions were lawful and were not crimes. He has vigorously defended himself from the beginning against all the charges. He will appeal his conviction,” he said.
“Mr. Kurlemann is very grateful and humbled by the outpouring of support from his family, friends, and business colleagues at this difficult time in his family’s life.”
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