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New details emerge as Crisp & Cole hearing continues
| Tuesday, Jul 29 2008 6:27 PM
Last Updated: Wednesday, Jul 30 2008 7:35 AM
Multiple loan applications kept secret from lenders. Discrepancies in income and job statements sent to various mortgage banks.
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Administrative Law Judge Humberto Flores sits at a makeshift desk in the basement of the Masonic Temple located on 18th Street before the start of the Crisp & Cole Real Estate hearing Monday afternoon.
Boxes upon boxes of evidence sit behind the prosecution desk in the basement of the Masonic Temple on 18th Street, before the start of the Crisp & Cole Real Estate hearing Monday afternoon.
Carl Cole waits for the start of his hearing on July 28.
David Crisp waits for the start of his hearing on July 28.
Such details, which will become the foundation of state real estate regulators’ case against Carl Cole, 61, and David Crisp, 28, continued to be laid into the record Tuesday during the second day of an administrative hearing in Bakersfield.
Both men, former principals of Crisp & Cole Real Estate and other companies, could lose their licenses if the state wins its case.
Some highlights from Tuesday’s proceedings:
• A letter signed by certified public accountant Timothy Hubbell claiming borrower Jennifer Crisp, wife of David Crisp, had worked at California Business Solutions for two years.
The letter, dated Sept. 16, 2006, was printed on letterhead from California Business Solutions, an accounting firm owned by Jennifer Crisp’s father.
State regulators allege the “chief operating officer” job claim is bogus in the California Department of Real Estate’s 25-page complaint, filed in September.
• In one loan application, David Crisp’s gross income was listed as $350,000 a month. In another application made at the same time to a different lender, Crisp listed gross income as $99,000 a month, documents indicated.
• Cole’s lawyer, Glenn Kottcamp of Fresno, more aggressively pursued what seems to be a major line of defense by questioning a witness as to how she knew Cole’s signature on numerous documents was authentic.
• Crisp, who is representing himself, went after lenders during cross examination. He questioned one witness about the large commission Crisp & Cole had received — $51,000 — for handling the sale of a Seven Oaks mansion Crisp himself bought.
Two days after state regulators filed their complaint, federal FBI and IRS agents raided 13 Bakersfield sites related to Crisp & Cole operations. No charges have been filed in that investigation.
An ongoing Californian tally has found nearly $78 million in troubled loans related to operations of Crisp & Cole’s employees, family members and business associates. Most involved homes in the Bakersfield area.
Of those home loans, 113 have so far been foreclosed on as of last week, the tally shows.
The state hearing resumes at 9:30 a.m. today in the basement of the Masonic Temple, 1920 18th St. The public may attend.