California Real Estate Fraud Report

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Owners of Pacific Property Assets Arrested in Alleged Ponzi Scheme

Two men who once owned a company called Pacific Property Assets were charged with mail fraud, bank fraud and bankruptcy fraud in an a 16-count indictment that prosecutors allege was a $110 million Ponzi scheme.

John Packard, 63, Long Beach, and Michael Stewart, 66, Phoenix, Arizona, are alleged to have refinanced the apartment buildings they owned multiple times, using the proceeds for themselves, company expenses and to pay back earlier investors and lenders. When the real estate market began collapsing in 2007, the men at first allegedly lied about its financial status in order to get more loans, then went bankrupt in 2009.

The losses were $100 million to the lenders and another $91 million to the investors. Only $25 million has been recovered thus far by the banks but there has been no recovery for the investors, who numbered approximately 647.

The case against Packard and Stewart was filed by the U.S. Attorney’s Office in Los Angeles and reported in its press release.

Read the original article in UPI.


© Copyright 2007-2018 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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