California Real Estate Fraud Report

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24
Jan

Crisp and Cole Ran “Mortgage Fraud Factory”

According to federal authorities, David Crisp and Carl Cole, the high-flying real estate agents and mortgage brokers of Bakersfield, ran a “full-fledged mortgage fraud factory. Although Crisp and Cole lost their real estate licenses in 2008, it is not until now that they, some of their relatives and employees have been criminally charged with fraud, money laundering and conspiracy in a 56-count indictment.

Estimates by the FBI and prosecutors in the U.S. Attorneys Office are that Crisp, Cole and Associates may have stolen more than $20 million, alleging that they and their business associates falsified loan documents, bought, sold and resold homes they purchased with inflated appraisals in as little as a few weeks.

Ten people have been arrested in the sweep: David Crisp, Jennifer Crisp (David’s wife), Carl Cole, Caleb Cole (Carl’s son) and employees Jayson Costa, Julie Farmer, Sneha Mohammadi, Mike Munoz, Robinson Nguyen and Jeriel Salinas.

David Crisp’s in-laws — Kevin and Leslie Sluga and Megan Balod have already accepted plea deals for fraud and aiding and abetting. It was Kevin Sluga, a former CPA, who falsified many of the loan documents submitted to Tower Lending, the mortgage firm owned by Crisp and Carl Cole. Christopher Stovall and Jerald Teixeira, who were loan officers, have also accepted pleas.

FBI Special Agent Manuel Alvarez noted that the alleged crimes, including mortgage fraud, are costly to taxpayers in the cases where the loans were guaranteed, as well as costly to people who purchased homes nearby based on the appraisals. *Note: as of this writing, no appraisers have been charged with appraisal fraud and no persons have been charged with escrow fraud.

Read the full article in the Bakersfield Californian.

Here is an article about how local real estate professionals feel about Crisp and Cole.

© 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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