Updated: Thursday, 23 Sep 2010, 3:38 PM EDT

Published : Thursday, 23 Sep 2010, 3:38 PM EDT

EAST AURORA, N.Y. (RELEASE) - U.S. Attorney William J. Hochul, Jr. announced today that John Sorrentino, 44, of East Aurora, New York, pleaded guilty before U.S. District Court Chief Judge William M.. Skretny to money laundering. The charge carries a maximum penalty of 20 years in prison, a fine of $500,000 or both.

Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that Sorrentino used fraudulent loan applications to get large sums of money from five banks in Arizona and Western New York. He then filtered the money into a down payment for the purchase of a home in East Aurora. In applying for a mortgage for the home, Sorrentino provided false information as to his salary, employer and address. In addition, he used a fraudulent loan application to obtain a mortgage and a home equity line of credit on a property in Arizona.

As a result of his guilty plea, Sorrentino's East Aurora home will be forfeited to the government as well as the computers used to facilitate the unlawful activity. Subject to Department Of Justice approval, the proceeds of the sale of the home will be used to compensate the victim financial institutions. Sorrentino also agreed in a separate civil matter to forfeit a vehicle which was purchased using the false information on the financing agreement.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The plea was the culmination of an investigation on the part of Special Agents of the Secret Service, under the direction of Special Agent in Charge Tracy Gast.

Sentencing is scheduled Jan. 7, 2011, at 9:00 a.m. EST, in Buffalo, N.Y., in front of Judge Skretny.