KANSAS CITY, KANSAS – A Johnson County man has been sentenced to 78 months in federal prison on bank fraud charges, U.S. Attorney Barry Grissom said today. He was ordered to pay approximately $2.6 million in restitution.

56-year-old Paul L. Hartfield, of Overland Park pleaded guilty to one count of conspiracy to commit bank fraud and money laundering.

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.

Here are the sentencing dates for the co-defendants in the case. Brian D. Jaimes is set for sentencing on December 17. John T. Bradfield and Kevin M. Mahoney are both set to be sentenced on January 7.