Lawyer gets 5 years in massive mortgage fraud

A Sarasota lawyer was sentenced to five years in federal prison today for his role in what authorities described as an $82.7 million mortgage fraud that victimized seven banks.

John A. Yanchek, 49, could have faced a longer sentence but was given credit for his extensive cooperation with prosecutors, including his testimony in the trial of a co-defendant, Tampa businessman Larry P. Nardelli, who was convicted for his role in the scheme.

"All I can really say is that after a lot of years work as a lawyer, I made a huge mistake that wrecked my life forever," Yanchek said before he was sentenced. "Did I do it? Yes, I did. ... In an effort to help close a real estate deal, I did some things I shouldn't have done."

He said his mistake is costing him dearly. "I expect to have my house foreclosed. I expect to be sued by everyone I owe money to. I lost my bar license. I won't be able to be a lawyer ever again, which I enjoy more than anything else."

But U.S. District Judge James D. Whittemore was unmoved.

"Whatever the ramifications are with regard to your law license and your career, they are deserved, plain and simple," he said.

Several people, including Yanchek's wife and mother, spoke on his behalf, describing him as a good man with a big heart who made a terrible mistake. They asked for mercy, saying Yanchek could do more good on the outside than in prison.

Defense attorney Thomas Ostrander said Yanchek has done everything he can to make things right.

Another defendant, Sarasota businessman Michael A. Tringali, was sentenced last month to three years and four months in prison. Tringali's cooperation started before Yanchek's, so he was given "a better deal," said Assistant U.S. Attorney Terry Zitek.

Zitek said Yanchek's cooperation was important to the prosecution of Nardelli. But, he noted, Yanchek participated in "a very serious and substantial crime," a scheme that collapsed after it was exposed by the Sarasota Herald-Tribune in 2007.

"This could not have occurred without his willful and knowing participation," Zitek said.

Yanchek pleaded guilty in February to conspiracy, money laundering and making false statements to a bank in connection with a commercial loan.

Whittemore also ordered Yanchek to serve five years of probation after his release and to sign an order agreeing to forfeit $7.6 million in assets. He said he will rule on the restitution amount after a hearing later this month.

Yanchek also must perform 300 hours of community service during his probation but can substitute hourly employment for half of those hours.

In addition to being a lawyer, Yanchek is a recognized international feline judge, according to court papers.

He, Nardelli and Tringali were arrested in July. A fourth defendant, Neil Mohamed Husani, has been arrested in Jordan and U.S. authorities are negotiating his extradition.

According to a 44-page indictment, between May 2004 and June 2006, the four defrauded Orion Bank, Mercantile Bank, Bank Atlantic, Coast Bank, Fifth/Third Bank, Wachovia Bank and First State Bank.

The defendants agreed to buy commercial real estate properties, intending to simultaneously resell the properties to other conspirators at a substantially higher price, the indictment states. The conspiracy involved commercial loans to fund the purchase of vacant land in the Sarasota/Manatee area.

The plan was to obtain bank loans for more than the cost of the property and without the need for down payments.

Yanchek, as the closing attorney, made false statements regarding the financial resources of the borrower and the equity contributed by the borrower, among other things, according to the plea agreement.