A Newport Coast man was resentenced today to five years behind bars and ordered to pay about $535,000 in restitution for a scheme to fraudulently obtain mortgage loans that went into default, causing more than $2.7 million in losses to the federal government and commercial lenders.

Lorenzo Espinoza, 46, pleaded guilty in 2006 in U.S. District Court in downtown Los Angeles to conspiracy to defraud the U.S. Department of Housing and Urban Development, bankruptcy fraud, money laundering and tax evasion. He was sentenced in 2010 to five years in federal prison.

Espinoza appealed, and the appellate panel ordered a new sentence after finding procedural error in U.S. District Judge Stephen V. Wilson's calculations, which were not tied to specific facts in the case and relied on the defendant's "extreme greed" to justify the prison term, the court determined.