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Loan Fraud

December 1, 2004 | From Associated Press
Car buyers beware: The Supreme Court said Tuesday that people misled about auto loans could not use a federal law to receive significant damages. When Congress passed the Truth in Lending Act 36 years ago, it decided to let consumers sue dishonest lenders for damages of $100 to $1,000. The law has been revised several times since then, but the Supreme Court ruled 8 to 1 that the damage caps would remain. The case was watched by consumer groups because of its potentially sweeping effect.
August 5, 2003 | From Reuters
Two of the three former Dynegy Inc. executives who had denied illegally hiding a $300-million loan under a scheme dubbed Project Alpha will change their pleas, federal prosecutors said Monday. Gene Shannon Foster, former tax vice president for Houston-based Dynegy, and accounting manager Helen Christine Sharkey had pleaded not guilty at a July 1 hearing to federal charges of criminal conspiracy, securities fraud, mail fraud and wire fraud.
June 26, 2003 | Bonnie Harris, Times Staff Writer
Thirteen Southern California residents have been charged with obtaining more than $24 million in fraudulent home loans insured by the federal government that resulted in at least $12 million in losses, the U.S. attorney's office said Wednesday. Five of the defendants, who operated as a group, have pleaded guilty to wire fraud charges for helping unqualified buyers get federally guaranteed home loans that were set aside for low-income applicants.
June 3, 2003 | Sam Howe Verhovek, Times Staff Writer
One of China's richest and most flamboyant businessmen is being detained for alleged loan fraud, becoming the latest executive to run afoul of a central government that alternately celebrates and cracks down on the country's highest-flying moguls. Zhou Zhengyi, a 41-year-old Shanghai native who rose from selling noodles and underwear on the streets to No.
April 29, 2003 | From Times Staff Reports
A La Crescenta woman who worked as a loan officer at a Southern California credit union was sentenced Monday to two years in prison for taking out 17 bogus loans that caused the firm to lose more than $200,000. Ibell Abellon, a former loan officer for Southland Credit Union, was sentenced by U.S. District Judge J. Spencer Letts and also ordered to pay $237,429 in restitution. Abellon, 39, pleaded guilty in December to four counts of bank fraud.
July 30, 2002 | From Bloomberg News
First Alliance Corp. customers who claim Prudential Financial Inc. and Wachovia Corp.'s First Union helped the mortgage lender deceive them must add more specifics to their lawsuit, a federal judge ruled Monday. At a hearing in Santa Ana, Judge David O. Carter told the plaintiff's attorney, Richard Scruggs, to submit a new complaint that details how the First Alliance mortgage customers learned of the fraud they claim was committed by Prudential and First Union.
January 24, 2002 | From Times Staff Reports
A Camarillo title examiner who fraudulently obtained construction loans for her own home has been sentenced to two years in state prison, prosecutors said. Karen Dribble, a former Oxnard resident also known as Karen Whirlow, pleaded guilty to two counts of grand theft last month. Prosecutors say Dribble misrepresented her position with Fidelity National Title Co. to obtain two construction loans.
March 7, 2001
BYL Bancorp, the holding company for BYL Bank Group, said Tuesday that it must repurchase allegedly fraudulent mortgage loans originated by nonemployees and sold to investors, resulting in a first-quarter charge of as much as $1.7 million. The alleged fraud was complex and involved more than 30 persons, including at least 13 businesses run by developers, real estate agents, appraisers, brokers and others, the Orange-based company said in a press release.
Former record promoter Joseph Isgro was sentenced to 50 months in federal prison Thursday for running a loan-sharking business outside a Beverly Hills shopping center. Isgro, who spent most of 1990s fending off federal payola and racketeering charges, was accused of lending money at 5% interest a week to people in financial distress and using subordinates to threaten those who fell behind in their payments. U.S. District Judge Audrey B.
Public service campaigns warning potential home buyers and other consumers about predatory lending traps will get underway in Los Angeles and 11 other cities over the next year with funding from Freddie Mac, the mortgage giant said Thursday. Freddie Mac, or Federal Home Loan Mortgage Corp., is chartered by the federal government but owned by shareholders. It has drawn fire from consumer advocates in recent months for its own investments in the lucrative sub-prime market.
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