Headline Legal News 2011/05/12 08:49
A Phoenix real estate agent has pleaded guilty in a mortgage fraud scheme that costs lenders almost $10 million.
Federal prosecutors said 31-year-old Jason Thomas Williams pleaded guilty Monday to charges of conspiracy to commit wire fraud.
It was unclear Wednesday when Williams will be sentenced. Prosecutors said he could be facing up to a 30-year prison term.
Three others charged in the same case also have entered guilty pleas while the remaining defendant is scheduled for trial in July.
Prosecutors said that from September 2005 through September 2007, Williams facilitated the submission of mortgage loan applications for unqualified straw buyers that contained false information.
They said Williams and the others concealed cash kickbacks to the straw buyers from lenders.
Headline Legal News 2011/05/10 08:50
A former Georgia bank executive who pleaded guilty to using customers and family members in a multimillion-dollar fraud conspiracy that led to his bank's downfall is scheduled to be sentenced to prison.
Randy Jones could face at least 12 years in prison on Wednesday when he is sentenced in federal court. Three others who have pleaded guilty to conspiring with Jones are also set to be sentenced.
Jones, 50, pleaded guilty in January to receiving kickbacks for real estate loans while he was an executive vice president at Community Bank & Trust, the failed Cornelia-based bank where he worked for 30 years.
The hearing started Tuesday but attorneys spent the day in court arguing over how much restitution Jones should pay and how much time he could face behind bars.
Headline Legal News 2011/05/06 08:35
A trial lawyer nominated by President Barack Obama to be a federal judge in Rhode Island was confirmed on a party-line vote Wednesday just hours after a Senate GOP filibuster attempt failed.
The Senate voted 50-44 to confirm lawyer John McConnell to the bench after a more significant 63-33 tally to advance the nomination past a filibuster orchestrated by GOP leaders.
Eleven Republicans joined with Democrats in the earlier vote to break the filibuster. GOP leaders opposed McConnell, citing his record as a trial lawyer in cases against businesses. Republicans also said McConnell was less than truthful in his testimony to the Senate.
Wednesday's vote comes six years after the Republicans then in control of the Senate considered a change in procedures to make it impossible to filibuster judicial nominations, citing numerous Democratic efforts to stall former President George W. Bush's nominees. Democrats said Republicans were being hypocritical in now trying to filibuster a Democratic nominee.
Headline Legal News 2011/05/05 09:30
Before Donald Trump sold the idea of a possible 2012 presidential bid, the bombastic real estate mogul peddled the American dream at a place called Trump University. He promised consumers the golden opportunity to be "my next apprentice" and learn "insider" secrets of real estate.
But a lawsuit filed in U.S. District Court in San Diego claims that the possible GOP presidential candidate's courses instead delivered expensive "infomercials" disguised as educational classes that preyed on vulnerable Americans in "troubled economic times."
George Sorial, assistant general counsel for the Trump Organization, told The Chronicle this week that the allegations contained in the suit are "completely ridiculous," adding that Trump University stands "100 percent behind any course we offered."
Sorial dismissed the lawsuit as an effort by two former students and their attorneys "looking to make a quick buck" from the celebrity businessman.
"There wouldn't even be a lawsuit if the Trump name weren't attached to it," he said.
But Tarla Makaeff, 37, a former fashion designer and marketer from Corona del Mar (Orange County), told The Chronicle in an interview this week that Trump's "university" was hardly worthy of the name.
Headline Legal News 2011/05/04 09:30
The city attorney sued Deutsche Bank on Wednesday, claiming the giant international lender illegally evicted tenants from foreclosed properties and left dozens of homes and apartments to rot, many in low-income neighborhoods.
The suit, filed in Los Angeles County Superior Court, accuses the bank of violating federal, state and city laws and seeks potentially hundreds of millions of dollars in reimbursements to the city and to evicted tenants.
The bank's subsidiaries, Deutsche Bank National Trust Co. and Deutsche Bank Trust Company Americas, are the city's largest slumlords, according to the lawsuit.
The city attorney's office contends the bank failed to act properly as trustee to more than 160 homes and other residences with owners who couldn't meet their loan obligations during and after the 2008 international financial meltdown.
"It's time to recognize that the fraud committed on Wall Street turns into blight on Main Street," City Attorney Carmen A. Trutanich said at a news conference.
He said the bank's subsidiaries acted as trustees for trusts composed of mortgage-backed securities involving at least 2,000 properties across the country.
The complaint focuses mainly on properties in low-income areas of the city, specifically South Los Angeles and the northeastern San Fernando Valley, but Trutanich said it could be amended to include more homes if further problems are found.
Headline Legal News 2011/04/28 09:30
A federal judge awarded $30 million Monday to more than 200 investors who claim they were defrauded by a pair of Nebraska City brokers.
The decision came in a class-action lawsuit filed in 2007 by former clients of Rebecca Engle and Brian Schuster in U.S. District Court in Omaha. It accuses them of improperly selling risky investments.
The $30 million judgment was against Schuster, a former Nebraska football player, and some of his investment firms. It does not include Engle.
J.L. Spray, an attorney for the investors, said Tuesday that he was pleased with the judge's decision but "it leaves the question of how much of this we'll be able to collect."
Schuster, who has since moved to Vermillion, S.D., is representing himself in court. A number listed for him rang unanswered Tuesday.
Spray said the case against Engle has been put on hold pending her bankruptcy case in Arizona.
Schuster, 37, is scheduled to stand trial next month in state court on eight counts of security fraud. Engle, 57, has pleaded guilty to two counts and awaits sentencing. Several lawsuits and arbitration claims have been filed against them.