California Real Estate Fraud Report

You have just entered the #1 private-sector resource on the Internet for real estate fraud. In doing so, you have voluntarily left the dimension of the conventional real estate world and crossed over to the Dark Side, the realm where greed, dishonesty and evil are the order of the day. Dare to sign up for a free subscription to this comprehensive news resource and receive weekly, timely news reports about real estate fraud, mortgage fraud, short sale fraud, REO fraud, title fraud, loan fraud, appraisal fraud, affinity fraud, loan modification scams, securities fraud and elder financial fraud.

19
Mar

Southland Fraudster Gets 13 Years

Edward Showalter, who was accused of defrauding over 100 investors out of $16 million in a real estate scam, was sentenced to almost 13 years in prison by a court. He had pled guilty to wire fraud in response to civil charges by the SEC and was also ordered by the court to pay over $15 million in restitution to his victims.

Using his firm High Park, which purported to be an expert in rehabbing distressed properties, and Harbor Financial, which was the supposed source of funding, Showalter placed advertisements in the Orange County Register and the Los Angeles Times.

The Commission’s complaint claimed that Showalter solicited Investments of at least $50,000 for High Park. But instead of using the investors’ funds for distressed real estate, he commingled their money and lied to them.

Investors were guaranteed monthly returns and claimed that the investments would be secured by second trust deeds. In actuality some of the trust deeds were never recorded and others had many as twenty or thirty investors in the second position.

This is not Showalter’s first run-in with the SEC, which had sued him in 1998 for running a similar scam.  In June 2002, a court found Showalter in civil contempt of the 2001 order requiring him to pay $900,000 in restitution. He finally paid the prejudgment interest and civil penalties in July and August 2004.

Read the Full Article.

Comments are closed.

© Copyright 2007-2014 Monique Bryher

Legal Disclaimer.

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.

ALL RIGHTS RESERVED. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the author, except for the inclusion of BRIEF QUOTATIONS in a review.

BLOG POWERED BY SHARP BIZ IMAGE

Copy Protected by Chetans WP-Copyprotect.