Couple Accused of Lying to Obtain Loans

San Juan Capistrano attorney Charles F. Benninghoff III and his wife, Nancy, were indicted by a federal grand jury in Los Angeles on Wednesday on charges of lying to three Orange County financial institutions to obtain nearly $1 million in loans.

Between 1989 and 1994, Charles Benninghoff, 54, and Nancy L. Benninghoff, 51, who are also both accountants, allegedly submitted phony income tax returns showing vastly inflated income to Bank of America, Bank of San Clemente and First Fidelity Thrift & Loan Assn. The couple also told the institutions they owned property that was not theirs, the 11-count indictment states.

In addition, the couple are accused of conspiring in 1993 to deceive Downey Savings & Loan Assn. into issuing about $40,000 in checks to a real estate developer who was a client of Charles Benninghoff. After falsified documents allegedly were submitted to Downey Savings, the institution issued checks to a defunct real estate brokerage controlled by the Benninghoffs, the indictment states. The pair then transferred the money to the client, it says.

Charles Benninghoff is also accused of falsely stating in a loan application to Bank of America that he and his wife had $200,000 in cash in an account at Kidder Peabody and $300,000 in certificates of deposit. Furthermore, he is charged with filing a false tax statement reporting $600,000 in income he never received.

If convicted on all counts, Charles Benninghoff faces a maximum sentence of 200 years in federal prison and a fine of $7.25 million, Assistant U.S. Atty. John S. Gordon said. Nancy Benninghoff could receive 162 years in prison and a $5.75-million fine, he said.

Charles Benninghoff said he couldn’t comment on the indictment because “I don’t know what the charges are.” He referred questions to his attorney, who did not return phone calls.

Benninghoff has acted as counsel in some cases that have drawn media attention. Last year, he represented a Santa Ana man found guilty of second-degree murder in a case that began with a traffic dispute.

Another client was a holistic health practitioner accused of sex crimes for a procedure used on female patients who had yeast infections. The charges were dropped after prosecutors concluded the practice was an accepted treatment in some states.

Benninghoff also has represented a citizens group in its legal battle against the Capistrano Beach Water District over alleged hazardous waste dumping into San Juan Creek.