California Real Estate Fraud Report

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27
Jul

Olympia Funding Sued for Alleged Loan Modification Scam

A man who surrendered his real estate broker’s license in 2011 after an investigation by the California Department of Real Estate has now had his firm sued by an Oakland law firm for allegedly committing loan modification fraud.

William Hogarty’s defunct firm, OF Lending Group, aka Olympia Funding, is the target of 22 Californians who are represented by David Tubman of the Tubman Law Group. Even Hogarty’s current and former wives have joined the lawsuit, which claims that OF Lending promised its prospective clients a “short pay refinance” in exchange for upfront fees. This very creative refinance (meaning it is bogus) purportedly would refinance the borrower’s mortgage at current market rates.

Upfront or advance fees have been illegal since SB 94 was passed in 2009.

Hogarty has filed for bankruptcy protection in federal court but even the federal bankruptcy trustees have challenged his attempt to use bankruptcy to shield himself from his from clients.

The lawsuit accuses William Hogarty of (illegally) charging advance fees for loan modifications, failing to place the monies in a trust account, and (surprise) taking the clients’ funds for his own use, all “with the intent to hinder, delay or defraud creditors.”

The lawsuit is Cunniff, et. al. v. OF Lending Group, et. al., Case No. RG 12640691 and was filed in Alameda County Superior Court.

This post is an abstract of the press release from the Tubman Law Group and ABC7 News.

© 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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