California Real Estate Fraud Report

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16
May

Atascadero Developer Kelly Gearhart Pleads Guilty in Real Estate Investment Fraud Case

Kelly Gearhart, 53, once a big-shot real estate developer and an Atascadero Citizen of the Year, has pleaded guilty in federal court in Los Angeles to fraud and money laundering charges after the U.S. Attorney’s Office in Los Angeles accused him of stealing upwards $20 million from his investors. No word where the $20 million is.

Gearhart currently lives in Wadsworth, Ohio. He accepted a plea agreement with prosecutors that required him to plead guilty to two counts of wire fraud and one count of money laundering and will possibly result in him receiving a sentence of 11 years in federal when he is sentenced this December.

Gearhart’s deal gives prosecutors the green light to pursue restitution for the victims/investors of the Vista del Hombre project. But Thom Mrozek, Public Affairs Officer for the U.S. Attorney’s Office says it is unclear whether any of those $20 million will be recovered and returned to the victims.

Another player in this Central Coast real estate investment fraud was  Atascadero hard-money lender Jay Hurst Miller, a colleague of Kelly Gearhart‘s. Miller has already pleaded guilty to fraud and money laundering and awaits his sentence, to be imposed in September.

Miller previously pleaded guilty to fraud and money laundering charges and is scheduled for sentencing in September.

Click on Kelly Gearhart plea agreement to read his allocution.

Read the original article in the SLO Tribune.

Note: There are many postings about the Kelly GearhartJay Hurst Miller case that can be found by using the search tool on the left side of the California Real Estate Fraud Report.

 

 

 

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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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