SAN DIEGO–A Tierrasanta man who was convicted in 2010 of fraudulently selling unapproved medical devices, was sentenced today to nine months in prison for defrauding Chase Bank in the refinancing of his home in the Tierrasanta neighborhood of San Diego.
James Folsom, 74, was convicted on the new charge after a jury trial in November 2014, and has been in custody since May 2014, when his fraudulent actions first came to the attention of the court. U.S. District Judge John Houston imposed the new sentence on Folsom.
Folsom was previously found guilty after a jury trial of illegally selling adulterated and misbranded medical devices. At that time, he was sentenced to 51 months custody, fined $250,000, and ordered to pay a penalty assessment of $2,600. According to evidence presented at his most recent trial, soon after his release from custody Folsom set out to defraud Chase Bank by requesting a refinance of his mortgage loan, but concealing the fact that he: 1) had an outstanding debt of $250,000 owed to the United States; 2) was delinquent on that debt; and 3) did not actually own the property he was seeking to refinance. According to evidence presented at the various sentencing hearings, Folsom’s intentional misrepresentation that he was the title holder of the Tierrasanta property left Chase Bank with an unenforceable, unsecured interest in the property that could not be used to recover the proceeds of the mortgage loan.
“Bank fraud is a billion dollar a year industry in the United States that affects every financial institution and taxpayers, because the fraud costs are passed on to the consumer,” United States Attorney Laura E. Duffy said. “The Department of Justice places great emphasis on recovering debts owed to victims of crime, whether they are individuals or institutions. And defendants need to know that such debts are like an anchor around them until they are paid.”