Naperville accountant sentenced in RV financing scheme

Two suburban men, including an accountant from Naperville, were sentenced to prison for their parts in a recreational vehicle financing scheme that cost lenders nearly $60 million.

Brian McMahon, 55, of Naperville received a 30-month prison sentence for acting as the accountant who facilitated false tax returns, according to prosecutors. He is scheduled to report to prison Jan. 21.

Prosecutors said McMahon and Russell S. Ott, 51, of Oswego worked together to fabricate false personal and business tax documents to defraud banks. Ott owned or co-owned a number of vehicle-related businesses throughout Illinois, including Liberty Cycle in Libertyville. McMahon served as Ott's accountant. The two men were arrested in August 2013.

Fifth Third Bank lost more than $27 million in the scheme, prosecutors said. Eighteen other lenders lost almost $45 million combined through roughly 200 fraudulent loans obtained by straw borrowers, according to court records. Many of those straw buyers have been sentenced or are awaiting sentencing, prosecutors said.

The funds generated through the fraudulent loans were used by Ott to finance "lavish purchases," prosecutors said. Those purchases included a house in Elburn valued at more than $1 million, a vacation home in Wisconsin and a rental property in South Elgin, as well as a small plane and hangar.

Ott was sentenced to more than 13 years in prison and ordered to repay lenders $61.2 million. He is slated to report to prison Jan. 20.

McMahon will also have to pay nearly $400,000 in restitution.

Both men will have to serve at least 85 percent of their sentences.