Federal courthouse
Federal courthouse in downtown San Diego. Photo by Chris Stone

An El Cajon man who pleaded guilty to federal charges stemming from years of under-reporting his income and a scheme to fraudulently obtain a mortgage for his $1.8 million home was sentenced Monday to 18 months in prison and ordered to pay more than $1.5 million in restitution.

David Daughtrey, 60, pleaded guilty last year to conspiracy to commit bank fraud and tax evasion and filing a false tax return.

Prosecutors say Daughtrey omitted at least $498,612 in income on his 2012 tax return, then failed to report his total income each year between 2013 and 2015, and did not file timely tax returns in subsequent years.

Daughtrey’s plea also came with admissions to having another person submit a mortgage application for his $1.8 million five-bedroom home. Daughtrey then made monthly mortgage payments on the home, while the bank believed the third party owned the house.

The U.S. Attorney’s Office said Daughtrey later submitted a false hardship letter on that person’s behalf in an attempt to get the terms of the loan modified.

“The defendant abused our tax and banking systems for his own financial benefit, and the victims of that crime are ethical taxpayers and bank customers,” said Acting U.S. Attorney Randy Grossman. “Today’s sentence will hopefully remind others that there is a high price to pay for such deception.”