A 46-year-old Coto de Caza man who stole $2.2 million from more than 500 victims in a bogus loan modification scheme was sentenced to more than eight years in federal prison.

U.S. District Judge Josephine Staton sentenced Kevin Frank Rasher Friday to 97 months in prison and ordered him to pay $2.24 million in restitution.

Rasher pleaded guilty May 26 to 12 counts of mail fraud.

Rasher’s attorney, Kate Corrigan, said she advocated for 41 months in prison.

“He’s got some significant health problems,” Corrigan said, adding that the defendant’s wife recently underwent surgery for cancer. They have three children, one who is in high school and the two others are in elementary school, the attorney said.

Rasher apologized to his victims.

“It’s really come home to him how his conduct has (affected) the many victims and his wife and children,” Corrigan said.

Corrigan also argued that since prosecutors are continuing a separate case against him, the defendant could face even more time behind bars after his prison sentence is done.

Senior Deputy District Attorney George McFetridge, who filed essentially the same case against Rasher in Orange County Superior Court, said it has not been decided how to proceed with the state case in light of the federal sentence handed down Friday.

Rasher represented himself to distressed homeowners in fear of losing their property as an attorney for the U.S. Department of Housing and Urban Development, even though he never had a law license in California, according to the plea agreement.

Rasher told the homeowners they had been approved for a lower mortgage payment or interest rate and then told them to send their mortgage payments to one of his businesses, according to federal prosecutors.

Instead of sending along the payments, Rasher pocketed the money, prosecutors said.

In the federal case there are about 512 victims alleged.

State prosecutors last year alleged they had uncovered 380 victims.

Federal prosecutors said in the plea deal they would push to have any sentence in federal prison run concurrent to any punishment he receives in the state court.

—City News Service


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