For a copy of the indictment and to read the lengthy release detailing the mechanics of this scam and interviews with victims, please follow the source link. This scam has been going on for some time now and involves THOUSANDS of victims in LA and San Bernardino county. The scam involved high pressure sales tactics, bait-and-switch loan documents and multiple other predatory practices.
Another one bites the dust - but too late to save thousands of people from being victimized and many lost homes.
Source: http://ag.ca.gov/newsalerts/release.php?id=1533&
08-019
FOR IMMEDIATE RELEASE
(916) 324-5500
LOS ANGELES-California Attorney General Edmund G. Brown Jr. today shut down Lifetime Financial, Nations Mortgage, Greenleaf Lending, Virtual Escrow, Olympic Escrow and Direct Credit Solutions, accusing the predatory lending companies of pushing homeowners into "illegal and unconscionable loans."
"As the mortgage crisis worsens, a growing number of fly-by-night companies are employing utterly brazen tactics to push homeowners into illegal and unconscionable loans," Attorney General Brown said. "The illegal sales practices of these companies, run by Eric Pony and his family, included psychological pressure, forgery, and outright lies," Brown added.
The companies ran a complex predatory lending scheme using bait and switch tactics to victimize thousands of consumers in California, many of whom have lost their homes.
Yesterday, the Los Angeles Superior Court, at the request of the attorney general, froze all the companies' real estate and bank accounts and enjoined them from engaging in further predatory practices. The freeze order also included expensive cars and millions of dollars in private real estate owned by Eric Pony. Brown also seeks an estimated $20 million in penalties and restitution.
In the coming weeks, Brown intends to bring additional legal actions, both civil and criminal, against other mortgage lenders and foreclosure consultants who are taking advantage of homeowners across California.
San Bernardino District Attorney Michael A. Ramos also announced that several individuals affiliated with Lifetime Financial were arrested this morning on charges including conspiracy, grand theft, forgery and elder abuse. "These predatory lenders have taken advantage of people who placed their trust, as well as their homes, in the hands of these unscrupulous business people," San Bernardino District Attorney Ramos said.
THE CHARGES
The attorney general is seeking civil penalties of $2,500 for each violation of law and full restitution as well as a permanent injunction against operation these businesses. Penalties and restitution are estimated to exceed $20 million. The following assets are subject of the seizure order:
· Bank accounts at Wells Fargo, Bank of America, Citibank, East West Bank, First Federal Bank and Washington Mutual
· 16 separate private and commercial properties, valued at more than $6 million, in Tarzana, Canoga Park, Studio City, Las Vegas, San Antonio, Sherman Oaks, North Hollywood and Los Angeles
· All personal property, especially luxury cars, including: 4 Mercedes Benzs, 2 Ferraris, 1 Land Rover, 1 BMW, 1 Audi and 1 Bentley
Other agencies which assisted with the investigation that led to today's lawsuit include: Los Angeles Department of Consumer of Affairs, California Department of Real Estate, the California Department of Motor Vehicles and the San Bernardino District Attorney.
Gene Wunderlich - Selling Southwest California Homes including Murrieta, Temecula & the Southern California Wine Country.
Please join & post
Comments(3)