Short sales are approved by banks when the homeowner can no longer afford the mortgage and can prove financial hardship. In Hayes’ case, the warrant for his arrest alleges Hayes submitted Bank of America false information about his true net worth, claiming he was unemployed. The felony complaint further alleges that as a result, Bank of America lost $586,245 from the short sale, which is also the amount of Hayes’ bail.
Prosecutors from the Orange County District Attorney’s Office contend that less than a year before the sale of his home, Conan Hayes sold his interest in a business for almost $8 million to surfing merchandise giant Billabong and paid cash for a $1.39 million house in Los Angeles County.
Click Conan Hayes Felony Complaint Warrant to read the OCDA’s felony warrant complaint.