IRVINE — In an attempt to recover missing funds for investors, a federal judge this week appointed a receiver to ferret out any remaining assets in the allegedly phony mortgage pools operated by First Pension Corp., the failed pension management firm.
U.S. District Judge Harry L. Hupp on Thursday appointed Donald W. Henry, a Woodland Hills lawyer who specializes in real estate-related receiverships, as the receiver for the web of entities and partnerships affiliated with Irvine-based First Pension. The receivership was requested by the Securities and Exchange Commission.
Companies that Henry will oversee are BMF Management Inc. and the BMF mortgage pools; Vestcorp Securities Inc.; Amerispec Inc., the home inspection company based in Orange; First Diversified Financial Services; Outpatient Surgery Center of California; Surgical Center Management;, Anaheim Surgery Center; Euclid-Ball ASC, Ltd., and Mitchell North Partners, Ltd.
The SEC has alleged that the owners of First Pension operated a massive pyramid scheme for years, enticing investors into allegedly phony mortgage pools by promising returns of as much as 20%. An estimated $121 million of investors' funds are missing, the SEC said.
The three operators of First Pension are scheduled to appear in federal court in Los Angeles at 10 a.m. Monday to plead guilty to two counts of mail fraud each. The charges carry a maximum prison term of 10 years, U.S. attorneys said.