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Jan.18, 2010

The former proprietor of a Vermont inn has been sentenced to nine years in prison and ordered to pay more than $12 million in restitution for his role in a real estate investment scheme.

Thirty-one-year-old Benjamin Osmanson, of Tehachapi, Calif., the former operator of the Highgate Manor, pleaded guilty in September to conspiracy, wire fraud and money laundering.

Federal prosecutors say Osmanson had friends and family pose as investors and filed false loan applications in their names.

Authorities say the documents, some of which were sent from the Highgate Manor, were used to obtain mortgages for 50 properties in five states.

Osmanson's co-defendant, Jillian Protzman, was sentenced Monday to six months in prison.