The Capistrano Insider

Attorney Generals Going After Mortgage Fraud

this just in:

Attorneys General of California and Nevada Announce Mortgage Investigation Alliance

LOS ANGELES -- Attorneys General Kamala D. Harris of California and Catherine Cortez Masto of Nevada today announced that their states have entered into a joint investigation alliance designed to assist homeowners who have been harmed by misconduct and fraud in the mortgage industry.

By forging this alliance, California and Nevada will combine investigative resources, including litigation strategies, information, and evidence gathered through their respective ongoing investigations, assisting each state as it pursues independent prosecutions.

This alliance will link the offices' civil and criminal enforcement teams, speeding along the full, fair and adequate investigation of wrongdoing in the two states, which have experienced similar foreclosure and mortgage fraud crises.

"The mortgage crisis is a man-made disaster that has taken a heavy toll on the country, but it saved its worst for California and Nevada," said California Attorney General Kamala D. Harris. "The mortgage crisis is a law enforcement matter, and we will prosecute to hold accountable those who are responsible and also protect the homeowners who are targeted for fraud. I am delighted that California and Nevada are entering into this alliance to leverage the best results for our investigations and look forward to forging similar collaboration with other states."

"I am pleased to join forces with General Harris to fight against fraudulent mortgage and foreclosure practices that continue to devastate lives, homes, and the economy in Nevada and California," said Nevada Attorney General Catherine Cortez Masto. "This strong partnership will allow our states to make an even more concerted effort to hold fraud perpetrators accountable and ensure law-abiding homeowners receive justice."

By most objective measures, California and Nevada have been the states hardest hit by the nation's foreclosure crisis. In October 2011, Nevada and California ranked first and second, respectively, for the percentage of their housing units that entered the foreclosure process, reflecting a parallel surge in foreclosures in the two states. One in every 180 Nevada properties entered the foreclosure process in October, and one in every 243 California homes received a filing that month. In 2010, California led the nation with a total of 546,669 foreclosure filings (4 percent of the state's housing units), while Nevada led the nation with 9.4 percent of its homes receiving a foreclosure filing (totaling 106,160 units).

The crisis in these Western states is similar because both states share a foreclosure system in which a bank can foreclose on a borrower's home without court oversight, also called "non-judicial foreclosure." The collective result has created a rich opportunity for predators, leading both states to make mortgage-related law enforcement action a top priority.

In May 2011, Attorney General Harris formed a Mortgage Fraud Strike Force, now composed of nearly 40 attorneys and investigators, that has launched a wide series of investigations and litigation. The Mortgage Fraud Strike Force has instigated legal actions in cases including a fraudulent multi-million dollar "mass joinder" lawsuit operated by the law firm Kramer and Kaslow, and the arrests earlier this month of three top officers of a Stockton real estate company who took thousands of dollars in up-front loan modification fees and made false promises to assist struggling Central Valley homeowners with lowering their mortgage payments.

In 2007, Attorney General Masto formed the Nevada Mortgage Fraud Strike Force that launched a wide series of investigations and litigation into areas including violations of the law related to mortgage lending, servicing, and foreclosure practices and the creation, rating, marketing, sale, and management of mortgage backed securities. The Nevada Mortgage Fraud Strike Force has taken action against predatory "mortgage rescue" companies and individuals claiming to offer services to stop foreclosures. Last month, the Strike Force announced the indictments of Gerri Sheppard and Gary Trafford, who led a massive robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents. Nevada is also suing Bank of America and its subsidiaries, including Countrywide, for violations of a Consent Judgment for mortgage servicing and mortgage origination irregularities.

The Mortgage Investigation Alliance is the product of weeks of discussion between Attorneys General Harris and Masto regarding the most effective and efficient means of achieving justice for their respective states. Today's announcement formalizes an agreement reached between the two officials last week.

Egan's Killer Gets Death Sentence

The OC Register reports the man who killed San Juan Capistrano resident Tom Egan -- the father of twin girls -- has received the death penalty from a Santa Ana jury.

From the Register's Larry Welborn:

SANTA ANA – Jason Russell Richardson, convicted last year of first-degree murder plus special circumstances for the killing of a manager at the Tustin Home Depot in 2007, was sentenced to death Wednesday.

Jurors in Superior Court Judge William R. Froeberg's court began deliberations Tuesday in the third retrial for Richardson, 42, of Oceanside. He was convicted of gunning down Tom Egan at the Tustin Marketplace Home Depot during a botched robbery Feb. 9, 2007.

See the whole story at www.ocregister.com

Maybe It's a Good Thing Capistrano Doesn't Have a Facebook Page...

From the Orange County District Attorney's Office:

July 12, 2011

Case # 10HF0401

TEEN DIRECT FILED AS ADULT CONVICTED OF STABBING FORMER CLASSMATE AND ASSAULTING TWO OTHER TEENS WITH CARVING KNIFE AFTER A FIGHT ON FACEBOOK

NEWPORT BEACH - A teen charged as an adult was convicted yesterday of stabbing a former classmate in the stomach and assaulting two of the victim's friends with a carving knife after posting their fight on Facebook. Michael Jason Wilson, 17, Laguna Beach, pleaded guilty July 11, 2011, to one felony count of aggravated assault with a knife and a sentencing enhancement for causing great bodily injury. He was sentenced to one year in jail, three years of formal probation, and restitution for the three victims.

Prior to March 11, 2010, then-16-year-old Wilson engaged in an online rivalry with 17-year-old Julian C. on Facebook and through text messages and e-mail. The defendant agreed to meet Julian C. at Wilson's house on March 11, 2010.

On the agreed-upon date, Julian C. and 16-year-olds Nicholas L. and Sam S. drove with a fourth friend to Wilson's Laguna Beach home after school. The victims and the defendant had previously attended the same high school, which Wilson was no longer attending. Wilson met Julian C. outside of the house while the other three waited in the car. After a confrontation, Wilson used a carving knife with a 12-inch blade, which he had brought outside with him, and stabbed Julian C. in the stomach.

The three waiting friends got out of the car and ran to help Julian C. and disarm Wilson. Wilson struggled with the victims and cut the hands and arms of Nicholas L. and Sam S. The fourth friend was not physically injured. The three victims and their friend were able to get back into their car and drive away. They flagged down a passing police officer and were transported to the hospital for treatment.

Responding officers from the Laguna Beach Police Department arrested Wilson that day at his home. Julian C. underwent surgeries to treat stab wounds to his stomach and hands. He was released from the hospital after one week. Nicholas L. underwent surgery on his hand and received stitches. Sam S. received stitches for his wounds.

Deputy District Attorney Caroline Smith of Felony Panel prosecuted this case.

US Supreme Court Gives Police More Authority to Enter Homes

From www.latimes.com:

WASHINGTON — The Supreme Court on Monday gave police more leeway to break into residences in search of illegal drugs.

The justices in an 8-1 decision said officers who loudly knock on a door and then hear sounds suggesting evidence is being destroyed may break down the door and enter without a search warrant.

Residents who "attempt to destroy evidence have only themselves to blame" when police burst in, said Justice Samuel A. Alito Jr.

In a lone dissent, Justice Ruth Bader Ginsburg said she feared the ruling in a Kentucky case will give police an easy way to ignore the 4th Amendment. "Police officers may not knock, listen and then break the door down," she said, without violating the 4th Amendment.

In the past, the court has said police usually may not enter a home unless they have a search warrant or the permission of the owner. As Alito said, "The 4th Amendment has drawn a firm line at the entrance to the house."

See the entire report here.

More Bad Politicos in Los Angeles County

From the Los Angeles County District Attorney's Office:

Former Pico Rivera city councilman sentenced

LOS ANGELES – A Los Angeles Superior Court judge today issued an order prohibiting former Pico Rivera City Councilman Ronald Beilke from running for or holding public office for four years, the District Attorney’s Office announced.

Judge Lisa Lench additionally sentenced Beilke to three years of probation and 30 days of community service. The defendant must also pay a $1,000 fine.

Beilke was convicted on Jan. 20 of two misdemeanor counts of conflict of interest for voting on contracts between the City of Pico Rivera and two private businesses, All American Asphalt and Mobility Solutions.

Evidence presented at trial revealed that the work stipulated by the contracts could foreseeably benefit Beilke’s Wienerschnitzel franchise in Pico Rivera.
Deputy District Attorney Sandi Roth of the Public Integrity Division prosecuted the case.

Beilke was found not guilty of one count of perjury and two counts of conflict of interest, one a misdemeanor, the other a felony.

The contract between the City of Pico Rivera and All American Asphalt was for paving of the intersection within 500 feet of Beilke’s restaurant. The work included decorative, colored concrete, the prosecutor said.

The contract with Mobility Solutions was for the design of a street light, within 500 feet of Beilke’s business, which allowed traffic to flow freely into the shopping center directly connected to his restaurant.