SEC accuses Phoenix-based company of orchestrating large mortgage lending scam
By APWednesday, July 29, 2009
SEC files complaint against Phoenix company
LOS ANGELES — The Securities and Exchange Commission has charged four people and a Phoenix-based company with securities fraud for orchestrating a mortgage lending scam that raised nearly $200 million from investors.
The civil complaint filed in Phoenix by Los Angeles agents Tuesday accuses Radical Bunny LLC of making false and misleading statements to hundreds of people about the safety and performance of the investments. The money was pooled to another Phoenix company that dealt in short-term loans to real estate developers.
The company was able to attract investors through word of mouth between their friends and relatives.
The SEC seeks the return of ill-gotten gains as well as penalties against all defendants, including two accountants, a pharmacist and a grade school principal.
Tags: California, Corporate Governance, Fraud And False Statements, Los Angeles, North America, United States
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July 29, 2009: 4:12 pm
Irwin Home Equity/Irwin Financial in California and Indiana are a horrible company to deal with. They have many former employees out there who will tell the whole truth about what shoddy business practices they employed to get loans through. They forged loan applications, they inflated applicants incomes and erased bad debt off of credit applications temporarily to get applications to go through. They then stood in line waiting for the homes to foreclose and opened another company called Franklin Financial in New York who purchases the homes back and re-sells them. They made money on both ends. The former employees have told many tales about the thousands of lawsuits against Irwin Home Equity/Irwin Financial. They paid off attorneys to get cases, almost all cases dismissed even when the law was clearly black and white in favor of the opposing party who was harmed by Irwin Home Equity. There is a couple in Pennsylvania who lost their home because of a $22 thousand dollar mistake on Irwin Home Equity’s part, the case was dismissed. They in their 50’s are now homeless. There are numerous stories of couples in Indiana who lost their home to Irwin’s mistakes and had absolutely no recourse in court because of Irwin’s far reaching lobbying efforts and campaign donations. There is a couple in Michigan who lost their home because of a mistake Irwin made and refused to fix. We are told this case was also dismissed because of their far reaching lobbying efforts and campaign donations. All of these people, over 200 of them are now left homeless because of Irwin Home Equity/Irwin Financial/ Irwin Union Bank’s despicable business practices and predatory lending, unfair business practices, gutter dealings. Do not do business with Irwin Home Equity/Irwin Financial/ Irwin Union Bank you will loose your home to foreclosure and end up homeless just as the people mentioned in this article have ended up. If the prospect of living in your car and showering at truck stops does not sound like a breath of fresh air to you look to have your mortgage funded elsewhere! |
Jon Hargrove