Topic Added April 13th, 2006 – Print This Story
A California mortgage lender has been dragged into the middle of a million dollar fraud lawsuit. The company, which operates out of offices in San Jose and Sacramento, was accused of more than 10 years of misappropriating investors funds. All the funds involved came from a local family who are involved in the hospitality business. The family was led to believe that this California mortgage company would invest their funds in mortgage loans secured by real property in exchange for collecting money at closing as the loan servicer.
The fraud was caught when the investors realized that deeds had been doctored to cover the fact that no properties were bought, and that their money had been stolen. Attorneys involved said that they fear other people have been fleeced in the same way, but have not yet realized the fraud due to the doctored deeds. The case has caused the bankruptcy of the mortgage company, which is so new that no list of creditors has been compiled, a standard practice in bankruptcy cases.
Topic Added April 13th, 2006 – Print This Story