California Real Estate Fraud Report

You have just entered the #1 private-sector resource on the Internet for real estate fraud. In doing so, you have voluntarily left the dimension of the conventional real estate world and crossed over to the Dark Side, the realm where greed, dishonesty and evil are the order of the day. Sign up for a free subscription to this comprehensive news resource and receive weekly, timely news reports about real estate fraud, mortgage fraud, short sale fraud, REO fraud, title fraud, loan fraud, appraisal fraud, affinity fraud, loan modification scams, securities fraud and elder financial fraud.

26
Sep

JSW Financial Defendant Sentenced to 18 Months

One of the defendants in the JSW Financial case, in which 200 investors were defrauded of millions of dollars in a real estate investment fraud was sentenced to 18 months in prison and three years of supervised release.

Richard Tipton, 62, provided assistance to federal prosecutors trying to determine exactly how much the investors were fleeced. The amount recovered could range from $7 million and as much as $20 million. His role in the scheme was as manager of the Blue Chip and Shoreline funds, which instead of distributing profits to the investors, generated monthly statements showing growth in the investments (securities fraud). This eventually attracted the attention of the Securities and Exchange Commission, which filed its own lawsuit.

Tipton was one of four men charged in the case. Jim Ward was the principal and owned Jim Ward & Associates, aka JSW Financial, based in Mountain View; he received a five-year prison sentence this August. The remaining co-defendants are Edward George Locker, 36, of Highland Heights, Ohio, and David Lin. Lin was sentenced to 28 months in federal prison; Locker is awaiting sentencing.

The victims were told their investment money would be used to make loans backed by residential real estate. The truth was that the defendants diverted the money to make unsecured, undocumented loans to their own entities, which made real estate investments and lost money.

Despite his criminal acts, 79 people wrote letters to the court asking for a lenient sentence for Richard Tipton. I’m assuming none of his supporters lost their financial shirts as a result of his, Ward’s or Lin’s actions.

Read the original article in Palo Alto Online.

© Copyright 2007-2017 Monique Bryher

Legal Disclaimer.

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.

ALL RIGHTS RESERVED. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the author, except for the inclusion of BRIEF QUOTATIONS in a review.

BLOG POWERED BY SHARP BIZ IMAGE

Copy Protected by Chetan's WP-Copyprotect.