Condo defendant gets prison time

A defendant in former Huntington Beach mayor Pam Houchen’s condo conversion scandal has been sentenced to four months in prison for his involvement in the scheme, according to Thom Mrozek of the U.S. Attorney’s office.

U.S. District Court Judge David O. Carter sentenced Thomas Bagshaw, an Orange County notary, to four months behind bars and four months of house arrest for forging signatures on several real estate deals that sought to illegally convert apartments into condominiums and sell them to unsuspecting buyers.

Houchen has not yet been sentenced. Her hearing, originally scheduled for Feb. 6, was delayed until August. She faces up to five years in prison, Mrozek said.

Carter also sentenced real estate investor Michael Cherney during the hearing. Cherney plead guilty last year to lying to federal authorities. He was sentenced to a year of probation and a $5,000 fine.

Houchen and seven other defendants were indicted in December 2004 by a federal jury. Houchen, alleged mastermind Phil Benson and title officer Harvey Du Bose pleaded guilty to charges of fraud. Former border patrol agent Michael McDonnell and Jeffrey Crandall were convicted by a jury for their involvement in the scandal. Sentencing dates for the remaining defendants have not been set.

Bagshaw also must contribute to a $261,000 restitution payment to Stewart Title, the company that insured the condos and was responsible for helping property owners obtain permits from the city.