Attorney Sentenced for Bank and Tax Fraud

An Orange County attorney was sentenced Monday to a year in prison for lying to several Southern California lending institutions to get more than $600,000 in loans and then lying to Internal Revenue Service agents investigating his case.

Charles F. Benninghoff III, 55, of San Juan Capistrano pleaded guilty in May to filing fake tax returns, showing vastly inflated income, with his loan application to First Fidelity Thrift & Loan. Benninghoff and his wife, Nancy, also admitted they gave a client bogus paperwork to submit to Newport Beach-based Downey Savings & Loan to obtain $40,000 in cash.

Nancy Benninghoff, 51, was sentenced to five years’ probation. She also was ordered to perform 3,000 hours of community service and to pay a $7,500 fine, the U.S. attorney said. Charles Benninghoff’s sentence includes 1,800 hours of community service and a $30,000 fine.

U.S. District Judge Manuel L. Real could have sentenced Charles Benninghoff to probation as well but chose to send him to prison. He will serve the full year because the sentence is too short for him to be eligible to receive time off for good behavior, Assistant U.S. Atty. John Gordon said.

The Benninghoffs’ attorney did not return phone calls on Monday.