California Real Estate Fraud Report

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06
Jul

Atascadero Developer Kelly Gearhart Indicted for Real Estate Investment Fraud

Developer Kelly Gearhart has been indicted by a criminal grand jury on federal fraud and money laundering charges in connection to monies he solicited from investors for real estate projects (real estate investment fraud).

The eight-page indictment charges that the 50-year old businessman, dubbed the “Citizen of the Year” in 2005 by the Atascadero Chamber of Commerce swindled millions from investors he duped by telling them the loans were secured by his own real estate investments. Instead, according to the indictment, he sold the same lots over and over to multiple buyers and did not own the land he claimed to own. The grand jury alleged that he used the funds he received to furnish a “lavish” lifestyle; some of which is bound to come out during the hearings for his $110 million bankruptcy.

Gearhart, who faces up to 300 years in prison if convicted of all the charges, also used pooled funds from bankrupt Hurst Financial Corp. Its former president James Hurst Miller has already pleaded guilty to four counts of fraud and money laundering charges in 2011.

Read the original article in the San Luis Obispo Tribune.

© 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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