California Real Estate Fraud Report

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Archive for the 'Real Estate Investment Fraud' Category

Defendant in real estate fraud case used funds for plastic surgery, travel

October 4th, 2016 at 7:54am

Mission Viejo resident Francisco “Frank” Hobson, 39, has pleaded guilty to taking $2.3 million-plus from investors in a real estate investment fraud.

As part of his plea agreement for wire fraud, Hobson must repay his victims at least $1.5 million, according to federal prosecutors.

According to court records, Hobson operated his “business” between December 2010 and June 2016 and promised the victims their money would be used to purchase properties. In fact, the properties were either not for sale or didn’t exist and the documents Frank Hobson provided were fraudulent or forged.

At one time, Francisco Hobson was a licensed real estate agent with the California Bureau of Real Estate before his license was revoked in August 2016.

Hobson used the victims’ money to buy groceries, travel and for laser-hair removal and plastic surgery, according to court records.

“The defendant made simple promises to his victims, promises he never intended to fulfill,” said U.S. Attorney Eileen M. Decker in a statement. “The defendant then used his victims’ hard-earned money to fund his personal lifestyle.

Read the original article in the Orange County Register or the press release by the U.S. Attorney for the Central District of California.

 

Ventury County Woman Goes to Prison for Foreclosure Consultant Fraud

September 30th, 2016 at 7:29am

Sixty-one-year-old Gregoria Mendoza was sentenced by Ventura Superior Court Judge Ryan Wright to seven years and four months in state prison after she pleaded guilty to multiple counts of grand theft and one count of foreclosure consultant fraud.

Mendoza, a resident of Oak View, was also ordered to pay over $470,000 in restitution to her victims.

Mendoza operated six or more real estate investment schemes according to the Ventura County District Attorney’s Office, snagging investors from Ventura, Los Angeles and Tulare counties.

Read the full article in the VCStar / Ventura County Star.

Utah man charged in real estate investment scam targeting Orange County investors

September 16th, 2016 at 9:21am

SANTA ANA, California – A Utah man has been arrested for his role in a real estate fraud scheme in which Southern California investors collectively suffered nearly $3.5 million in losses.

Shawn Patrick Watkins, 46, of Layton, Utah, was taken into custody on September 1 when he surrendered to FBI agents in Orange County. Watkins had been charged with mail fraud, wire fraud and money laundering in a nine-count indictment returned on August 17 by a federal grand jury.

Watkins and others offered investments in a company known as The Equity Growth Group (TEGG) between approximately 2007 through 2014. According to the indictment, the victims were solicited during seminars in Orange County hotels offered by Investor Workshops, Inc., in which Watkins presented himself as an expert in the field of real estate investment. In order to lend credibility to the scheme, Watkins attempted to gain trust by telling investors that he was formerly employed as a law enforcement officer.

As part of the solicitations, Watkins made omissions and false promises to investors. For example, the indictment alleges that Watkins falsely told investors that TEGG controlled hundreds of properties that generated rental income and TEGG would continue its growth by acquiring new properties. Watkins led investors to believe that they would receive substantial interest payments or that their money would be secured by collateral through the filing of deeds of trust on properties.

In reality, over the course of the several years, until the scheme collapsed in the spring of 2014, TEGG was not acquiring new properties and had a negative cash flow.  Investor money was not used to acquire new properties, nor was it secured by collateral, and many victims did not receive interest payments. In fact, money that was paid to some victims as purported interest or a return on their investment came from investments made by other victims.

Read the rest of the press release from the U.S. Attorney for the Central District of California.

Two Plead Guilty in Loomis Wealth Solutions Mortgage Fraud Case

August 11th, 2016 at 8:42pm

Michael Llamas, 31, of Tracy, and Peter Woodard, 48, of Ventura, pleaded guilty in federal court in Sacramento to conspiracy to commit wire fraud. Llamas separately pleaded guilty to a count of concealment of a felony.

Llamas owned LW Premier Holdings LLC and Woodard owned Cobalt One LLC. They had rights to buy homes at discounts from builders in several states but purchased homes at full price without disclosing this to the lenders.

Loomis Wealth Solutions convinced investors to buy homes using their credit, which would then be rented out and managed, with the investors getting regular payments. Owner Lee Loomis was arrested in 2012 and charged with multiple counts of mail fraud and wire fraud. After pleading guilty in January 2016, he asked the court to withdraw his plea.

There are numerous articles on Lee Loomis and Loomis Wealth Solutions on earlier postings on the California Real Estate Fraud Report.

Yorba Linda Chiropractor Sentenced to Four Years in Real Estate Fraud, Ponzi-Scheme Case

June 17th, 2016 at 9:36am

Yorba Linda chiropractor Bobby Hamby has received a sentence of four years in prison for stealing over $2 million from investors.

Hamby, 56, who pleaded guilty in 2015 to two counts of wire fraud, must also pay more than $1.2 million in restitution to his victims.

Hamby’s business was called B+E Family Investments LLC. According to prosecutors, he solicited money from his victims, promising them he would buy and improve properties and resell them at a profit. Instead, he used the victims’ monies to pay his mortgage,  dues at the Yorba Linda Country Club dues, car payments, attorney fees, medical and dental bills and other personal expenses.

Read the original article in the OC Register.

San Joaquin Real Estate Agent Arrested for Elder Abuse

May 12th, 2016 at 10:51am

Geana Or, a real estate agent from Lathrop, in San Joaquin County, has been arrested on suspicion of grand theft and elder abuse. Or, 46, who also uses the name Geana Lay.

Or / Lay will face prosecution in Santa Clara County by the Real Estate Fraud Unit with the Santa Clara County District Attorney’s Office.

Investigators found out about the alleged fraud after a 73-year-old Los Altos Hills resident reported that he was approached by his real-estate agent last year and proposed that he purchase two homes that were “supposedly approaching foreclosure” with the intent of flipping them for higher value in the future. Between January and March 2015, the agent, since identified as Or, convinced him to write 10 cashier’s checks in her name, totaling about $475,000.

Read the original article in Mercury News.

Mortgage Broker Pleads Guilty in Foreclosure Fraud Case

May 12th, 2016 at 10:38am

Ventura County District Attorney Gregory D. Totten announced that Gregoria Mendoza, a former mortgage broker, has pleaded guilty to multiple counts of felony grand theft and foreclosure consultant fraud.

Prosecutors said that Mendoza, 60, created six separate real estate investment schemes and stole about $470,000 from victims in Ventura, Los Angeles and Tulare counties. She had told the victims their money would be invested in real estate projects but instead she spent the money on herself.

Mendoza also illegally charged one of the victims upfront/advance fees for a mortgage loan modification.

Read the original article in the Ventura County Star.

Co-Founder of Pacific Property Assets Gets Light Sentence Due to Minor Child

April 29th, 2016 at 1:16pm

John Packard is a convicted felon who caught a lucky break.

Packard, 66, is the co-founder of Irvine-based Pacific Property Assets, along with his former partner, CEO Michael J. Stewart, 68. In exchange for testifying against Stewart in a case in which prosecutors alleged that about 650 mostly elderly investors lost a total of $169 million in savings and retirement funds when PPA declared bankruptcy, Packard received only 2 1/2 years, whereas Stewart was sentenced to 14 years.

Packard’s luck is that he and his ex-wife, who is serving a life sentence for contracting the murder of her wealthy boyfriend William McLaughlin, have a 16-year old daughter. U.S. District Judge Cormac J. Carney granted the lenient sentence to Packard for his cooperation and lesser culpability than Stewart.

Read the original article in the Orange County Register.

Stanislaus County District Attorney’s Office Receives Federal Award

April 8th, 2016 at 10:27am

Federal prosecutors have awarded the Stanislaus County District Attorney’s Office the Outstanding Law Enforcement Agency Award for the Eastern District of California for its efforts to fight mortgage fraud and violent gangs.

In acknowledging the work of Investigator Glenn Gulley and Lt. Froilan Mariscal , U.S. Attorney Benjamin Wagner said “The investigators with the Stanislaus County District Attorney’s Office deserve particular recognition for their skill, diligence, and spirit of cooperation.”

Glenn Gulley worked on the FBI’s mortgage fraud task force and continues to work with federal investigators on several pending fraud cases, including the case against Xue Heu, a “serial investment fraudster” who posed as a government official to sell distressed properties to investors, according to federal prosecutors. Heu was sentenced to more than five years in prison. There are several articles about Xue Heu than can be found on the California Real Estate Fraud Report.

Read the original article in the Modesto Bee.

Bakersfield Investment Club under Investigation by the SEC

March 25th, 2016 at 6:48am

The Bakersfield Investment Club, located on Stockdale Highway is under investigation by the Securities and Exchange Commission.

The SEC filed a complaint last week against the company, alleging CEO Daniel Nase of running a fraudulent scheme designed to enrich himself. Nase, a former property appraiser for Kern County,  took in over $11 million from 400 people and guaranteed his investors a minimum return of 15 percent.

Los Angeles-area attorney, Scott Vick, who represents Daniel Nase, said he client ” . . . was very transparent and well-intentioned.” The SEC got it wrong. They don’t win every case they bring.”

Read the original article in BakersfieldNow.com

© Copyright 2007-2016 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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