Two Newport Beach men facing federal charges

A Newport Beach man who owned a mortgage business was arrested

Thursday morning on charges he defrauded more than $9 million out of

lenders and laundered funds through offshore accounts.

Kenneth Christopher Ketner, 57, appeared in Santa Ana Federal

Court Tuesday on a 14-count indictment, said Thom Mrozek, public

affairs officer for the U.S. Attorney’s Office in Los Angeles. Ketner

was expected to make the $150,000 bond and be released Thursday

night, Mrozek said.

Ketner, owner and CEO of Mortgage Capital Resources, is accused of

orchestrating a complicated scheme that defrauded lenders and used

the funds for things like a $244,000 Ferrari. Some of those funds

were allegedly laundered through bank accounts in Nevis and

Luxembourg.

Newport Beach resident Allen Johnson, 59, is also named in the

indictment and faces six counts of wire fraud and one count of

conspiracy to launder money.

The two men are scheduled to appear in court Feb. 22 for

arraignment.

Ketner faces up to 105 years in federal prison if convicted.

Johnson could face up to 40 years.