California Real Estate Fraud Report

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Archive for February, 2017

Newport Beach Man Agrees to Settlement with SEC on Golf Course, Real Estate Venture

February 17th, 2017 at 11:44am

Paul A. Garcia, of Newport Beach, has agreed to pay $3.3 million in settlement to fraud charges brought by the Securities and Exchange Commission. Garcia allegedly defrauded investors and misappropriated money from the investment fund he managed, Caliber Partnership I LLC on a golf resort and real estate venture deal.

Another person, Richard T. Woods of Southlake, Texas was accused of misrepresenting Caliber’s financial status in marketing materials that he prepared and which were approved by Garcia. According to the SEC’s complaint, one of the fraud victims was an 82-year-old who lost $250,000.

Read the original article in L.A. Biz.

Newport Coast Man Charged in Financial Elder Abuse of 95-Year-Old Woman

February 17th, 2017 at 11:30am

Thomas Chapman Hood, a 68-year-old Newport Coast man, has been charged with financial elder abuse of a 95-year-old woman with dementia by the Orange County District Attorney’s Office. Specifically, the charges are 19 felony counts of forgery, one felony count of first degree residential burglary to commit larceny and financial elder abuse, and one felony count of theft from an elder, with sentencing enhancement allegations for non-accomplices being present during residential burglary, aggravated white collar crime over $500,000, and property loss of over $200,000

Chief of Staff Susan Kang Schroeder said Hood, who was employed part-time as an assistant to the trustee, allegedly forged the trustee’s signature on checks totaling $534,850 dollars between March 2015 and September 2016. It was the trustee who discovered the fraud when he tried to make a payment from the woman’s bank account to to her assisted living home which was denied due to insufficient funds.

Hood allegedly used the stolen money to pay for his personal expenses, including credit card bills and a 2-week vacation in Paris, France, according to the press release by the Orange County District Attorney.

Read the original article in The Patch.

 

San Diego Woman Pleads Guilty to Defrauding Two Lenders after Witch Creek Fire

February 3rd, 2017 at 10:48am

The out-building adjacent to the home Deborah and Douglas Tumlinson owned in Ramona was destroyed in the Witch Creek fire that occurred in San Diego County’s back-country in October 2007.

Unlike the other victims who filed claims against San Diego Gas & Electric, which acknowledged that the fire stemmed from sparks from some of its equipment during high winds, the Tumlinsons took a different approach.

Deborah Tumlinson convinced the Tumlinson’s family friend and trust attorney, Carter Johnston, to write a letter to New Jersey-based lender, U.S. Claims, advising the lender that they would be receiving a $2.49 million settlement from the wildfire and would be paid within 30 days. Johnston, who was disbarred for his false representations to U.S. Claims, also stated falsely that he had represented the Tumlinsons in the settlement. As a result, U.S. Claims and its president Darryl Levine made a loan to them for over $700,000 to buy a new house.

The Tumlinsons failed to repay the loan and failed to repay a second loan they received from Seaside Funding, a Carlsbad mortgage broker, for the new home they falsely claimed would be a rental property.

Deborah Tumlinson pleaded guilty in May 2016 to aiding and abetting in a wire fraud scheme and was sentenced by U.S. District Judge Janis Sammartino  to a year and a day in prison. The judge noted how her actions had caused great suffering to others, namely Darryl Levine, who was forced to sell his business in 2014.

Douglas Tumlinson, who actually signed many of the documents, entered into a deferred prosecution agreement with the U.S. Attorney’s Office, which dismissed the charges against him after his wife was sentenced.

Judge Sammartino ordered the couple to pay $1.8 million in restitution to U.S. Claims, although there is already a civil judgment against them, according to U.S. Claims attorney Pat Swan. Seaside Funding was made whole at the foreclosure auction.

Read the full article in the San Diego Tribune.

Read the press release of this case from the U.S. Attorney for the Southern District of California. The case was prosecuted by Assistant U.S. Attorney Christopher P. Tenorio.

© Copyright 2007-2017 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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