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Crisp, Cole allegations explained
Regulators say case is among largest of its kind in region
| Wednesday, Sep 12 2007 8:59 AM
Last Updated: Wednesday, Sep 12 2007 7:44 AM
Here’s how a plain-English translation of the allegations state regulators filed Monday against Crisp, Cole & Associates might read:
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Sneha Mohammadi, an office manager, agent and broker, was paid by the firm to be a straw buyer, regulators claim.
Robinson Nguyen, a sales agent, is accused of falsifying a loan application.
Janie 'JJ' Stockton the former office manager paid by David Crisp to be a straw buyer, regulators allege.
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The Bakersfield real estate company paid two employees to pretend to buy homes — to act as so-called “straw buyers” — on three transactions. The company promised to make mortgage payments and planned to keep profits when the homes sold.
Company principals Carl Cole and David Crisp deceived lenders to get more favorable loan terms on four houses. Each home was supposed to be a primary residence, not an investment property.
Cole and Crisp allowed employees to pass bogus claims of primary residency — again, to get favorable loan deals — for a spouse and staffers on five properties.
The firm allowed Crisp’s wife and mother-in-law to turn in loan documents with false employment information, including nonexistent positions at Crisp & Cole Real Estate and a business owned by Crisp’s father-in-law.
Cole, 60, declined to comment. Crisp, 28, could not be reached Tuesday.
The nature and depth of allegations makes Monday’s filing against Crisp, Cole & Associates noteworthy, said Tom Pool, spokesman for the California Department of Real Estate, which wrote the document after months of investigation.
Regionally, only one current accusation, in the northern Central Valley, compares to the scope of the Crisp & Cole case, he said.
The department’s 25-page filing repeatedly uses the words “fraud” and “dishonest dealing” to describe actions of company principals and three employees.
“It’s a falsehood,” Pool said of using straw buyers, fake jobs and phony claims of primary residency to fool lenders.
The 100 percent financing used for all 13 properties in the accusation is allowed only when the borrower is the primary resident, Pool said.
It could take several months, he said, before hearings play out and the public knows whether licenses of the five people in the accusation are intact, suspended or revoked.
Additionally, Cole, who was managing broker, could face disciplinary action.