Sacto 9-1-1
May 11, 2012
Chico developer gets prison for housing scheme

William E. Baker of Chico was sentenced to 18 months in prison today, in connection with a mortgage fraud scheme in 2007, the U.S. Attorney in Sacramento announced.

Baker inflated sales prices of five homes to secure large loans and then used the money as kickbacks to purchasers, according to a press release from the office of U.S. Attorney Benjamin Wagner.

Baker pleaded guilty and will have three years of supervised probation following his release.

Altogether, Baker gave $160,000 in kickbacks, officials said.

Three other defendants have also pleaded guilty in the scheme, while a fourth was convicted after a jury trial in March.

Baker was granted leniency because of his health and other mitigating factors, according to the U.S. Attorney's release.

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