A Bend mortgage broker who admitted to falsifying documents for borrowers is due to be sentenced on multiple charges early next month in federal court.

Delbert L. Barber Jr., 46, is one of six people to plead guilty to loan and mortgage fraud charges for their actions in connection with Desert Sun Development. The now-defunct company built commercial and residential projects in Central Oregon between 2004 and 2008, and according to documents filed with the United States District Court, caused financial institutions to lose more than $19 million through the use of fraudulent loan applications.

Assistant U.S. Attorney Scott Bradford said the government plans to request a sentence of 27 months in prison, with three years post-prison supervision, and restitution of more than $340,000. Barber’s sentencing hearing is scheduled for Aug. 2.

In June, Barber pleaded guilty to conspiracy to commit bank fraud, and he is set to become the first of those who have entered guilty pleas to proceed to sentencing. Bradford said seven more people connected to Desert Sun Development are scheduled to go to trial in March.

In 2006, Barber was the owner/operator of Pine Mountain Mortgage when he was invited to process loans for borrowers looking to purchase houses built by Desert Sun Development.

Barber learned that Desert Sun Development was providing the borrowers with money for the down payment and closing of the loan, and intended to subsidize or pay the borrowers’ mortgage payments until the houses could be flipped — at which time the borrowers would repay Desert Sun Development.

According to court documents, in one instance Barber prepared a loan application claiming $125,000 that had been lent to the borrowers by Desert Sun Development was the borrower’s own funds. The misrepresentation allowed the borrowers to qualify for a loan they would otherwise have been unable to afford, and the lender eventually foreclosed on the house.

Tuesday, Barber pleaded guilty to an unrelated charge of health care fraud for attempting to fraudulently reinstate his medical insurance following a motorcycle crash.

After letting his insurance lapse, Barber crashed his motorcycle in 2009. In an attempt to reinstate his insurance, Barber faxed his provider a fraudulent letter and check claiming he had not failed to pay his premiums. After the reinstatement was denied, Barber made harassing visits and threatening phone calls to the provider, court documents state, and filed a lawsuit against the provider in state court.

The two cases were consolidated by the federal court, and the sentence sought by prosecutors is for both charges, Bradford said.

One of the two men at the helm of Desert Sun Development has pleaded guilty to fraud charges, while the other has yet to go to trial.

Shannon Egeland, of La Grande, a Desert Sun Development co-founder and vice president, pleaded guilty last year to conspiracy to commit bank fraud and bank fraud. He has not yet been sentenced, and a status conference between Egeland’s attorneys and prosecutors is scheduled for October.

Earlier this year, Egeland was sentenced to 40 days in jail for illegal distribution of prescription drugs within 1,000 feet of a school.

Former Desert Sun Development president Tyler Fitzsimons is set to go to trial next year on charges of conspiracy to commit bank fraud, making false statements on loan applications, bank fraud and money laundering.

Additional guilty pleas in Desert Sun case

Shannon Egeland, Desert Sun vice president, pleaded guilty to conspiracy to commit bank fraud and bank fraud. He admitted to temporarily depositing money in employees’ bank accounts to help them qualify for loans, and to signing a fraudulent $1.9 million loan application to build his 20,000-square-foot home in Powell Butte.

Jeremy Kendall, a Desert Sun employee, pleaded guilty to two counts each of conspiracy to commit bank fraud and bank fraud. He admitted to submitting fraudulent documents to financial institutions to finance various Desert Sun projects.

Robert Brink, an Umpqua Bank building inspector, pleaded guilty to making false statements to Umpqua Bank, certifying construction was underway on two of Desert Sun’s commercial projects when no construction had occurred.

Teresa Ausbrooks, an escrow officer, pleaded guilty to two counts of bank fraud. She admitted making false statements relating to her income and debts in loan applications to finance the construction of two homes.

Michael Wilson, Desert Sun residential construction superintendent, pleaded guilty to one count of bank fraud. He admitted making false statements about his income and assets to buy a Desert Sun-built home.

— Scott Hammers, The Bulletin