LEXINGTON, Ky. — The owner and operator of a home construction business in Georgetown, Ky., Edwin B. Koressel, 39, was sentenced to five years supervised release to include two days per week of incarceration for three months, a fine of $10,000.00 and ordered to pay restitution of approximately $9348 by United States District Court Judge Jennifer B. Coffman.

Koressel, owner/operator of Triangle Group Inc., pleaded guilty to an information in September of last year. In conjunction with his business, Koressel, of Jefferson County, assisted certain potential buyers, whose credit rating or financial situation made it difficult to find conventional lending, obtain financing for the purchase of one of his homes.

In August of 2002, Koressel entered into an agreement with a couple from Georgetown, Charles and Glenda Davis, to purchase a home from him. Koressel, and others, then created a scheme to obtain money from Option One Mortgage Company, a California corporation specializing in home mortgage financing.

Koressel provided money to the Davises to place in their savings account for the required down payment, making it appear the Davises had the money for the down payment. He also altered a bank Verification of Deposit form to make it appear the funds had been in their personal savings account for many months.

Koressel did not disclose to Option One that he had loaned to the Davises the down payment for the closing. The Davises immediately returned the money after the closing and signed a note to pay Koressel the down payment over time.

Also in the loan application, the Davis’ income and assets were overstated, their dependants were omitted, and on various application documents their names were forged.

They also represented to Option One that there was no secondary debt on the property, when in fact, Koressel had obtained a second mortgage from the Davises. This mortgage was held for two weeks before filing a record ro avoid discovery of the incumbrance by Option One.

Koressel was also ordered by Judge Coffman to obtain financial counseling and mental health counseling. The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Kenneth R. Taylor represented the United States in the case.