A Marin County, California, mortgage broker pleaded guilty last month to 14 federal counts related to a $2.4 million scheme to defraud investors.
Paul Sloane Davis, a 75-year old mortgage broker, pleaded guilty in March to 14 federal counts in relation to a $2.4 million real estate investment fraud.
Davis operated D.M. Financial along with Diane Cobb, 57, who pleaded guilty in July 2014. U.S. Attorney Melinda Haag said the pair diverted investor funds for their own use or to make interest payments to prior investors (Ponzi schemes). The investment opportunity was to provide short-term financing to borrowers for their real estate transactions.
Read the original article in Inman.com