Former Deep River Resident Admits to Mortgage Fraud

Information provided by the U.S. Attorney's office, state of Connecticut:

David B. Fein, U.S. Attorney for the District of Connecticut, has announced that John J. Doran, 63, of Niantic, formerly of Deep River, pleaded guilty April 4 before U.S. Magistrate Judge Donna Martinez in Hartford to one count of making false statements to influence a bank in connection with a mortgage application.

According to court documents and statements made in court, 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, 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.

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.

Doran is scheduled to be sentenced by U.S. District Judge Robert Chatigny on June 25, at which time he faces a maximum term of imprisonment of 30 years and a maximum fine of approximately $1.9 million.  As part of his plea agreement, Doran has agreed to pay restitution of $991,883.65. This case has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney David Huang.