Loan-Scam Operator Is Sentenced

SEATTLE - A Seattle-area entrepreneur who ran a real-estate loan scam has been sentenced to 13 months in prison and a $20,000 fine.

Gregory Pinneo, 38, was among four people sentenced Monday by U.S. District Judge William Dwyer in a so-called "no money down" real-estate-financing scheme.

According to federal officials, Pinneo led the operation in which banks were told that cash down payments were being made on residential property purchases, persuading the banks to lend the balance of the loan. In fact, the buyers were given only promissory notes called "silent second mortgages."