California Real Estate Fraud Report

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23
Nov

Owner of Paramount Group Found Guilty in Brazen Mortgage Fraud

Brandon Hanly, 32, of Redding, who was indicted as part of a conspiracy to defraud banks (mortgage fraud, loan fraud) in order to skim equity using inflated appraisals (appraisal fraud) has been found guilty by a federal jury. The jury convicted Hanly, a formerly licensed real estate broker and principal of Paramount Group, of wire fraud, mail fraud and money laundering.

According to the US Attorney’s Office, which prosecuted the case, Hanly conspired with Douglas Heald, 32, and Jerald Maggi, during a 7-month period in 2005-2006 to defraud lending institutions. The indictment against the three accused them of altering appraisals and title documents so that they could receive $5 million in mortgage loans and an additional $1.5 million in cash out.

Douglas Heald and Jerald Maggi pleaded guilty before going to trial but Brandon Hanly took his chances and offered a defense of being a victim. Prosecutors proved to the jury that, however, that Hanly received $300,000 in proceeds, not much money if he receives the maximum sentence of 30 years in federal prison and $500,000 in penalties when he is sentenced in 2013.

The fourth participant was a Redding-based mortgage broker named Joshua Gervolstad, who in 2010 was sentenced to three years in prison and order to provide restitution of $1.4 million for controlling a shell company called TPG Investments Inc., which he used to distribute the ill-gotten proceeds.

Read the original article in the Redding publication Record Searchlight.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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