 A criminal complaint was filed against Dorn on June 26, 2008, alleging he obtained a low-interest $500,000 loan from a fund that was intended to help municipal employees afford to live in town and/or improve their homes.Precipitated by a 2007 California Supreme Court ruling retroactively applied to a loan he applied for and was granted in 2004 (and repaid in full in 2006), Dorn was charged with felony misappropriation of public funds, using an unauthorized loan for private profit, and conflict of interest.He faced up to four years and eight months in state prison if convicted of all counts.