Contact Us for a Free Consultation 877-750-7550

Law Office of Pilchman & Kay, A Professional Law Corporation Blog

Prison Sentence for $20 Million Real Estate Fraud

Posted by Courtney Pilchmann | May 24, 2009 | 0 Comments

Attorney General Edmund Brown announced that Thomas Hastert plead guilty to 59 felony counts of securities fraud, embezzlement and selling securities that were unregistered.

Brown alleged Hastert was involved in an elaborate real estate scam, stealing millions from investors. For his plea, Hastert will spend 5 years in federal prison. Not bad for a $20 million dollar fraud.

Hastert brokered over 270 hard money loans in Central and Northern California for real estate projects. Hard money loans are secured with collateral and usually have higher returns for the private investors who supply the money.

Hastert is accused of: -Misleading investors by telling them that the borrowers had high credit scores and were financially able to repay the loans. -Failing to place funds into an escrow account monitored by a third-party escrow company. -Telling investors he would personally oversee development projects, which he did not. -Setting up straw men investors to keep the actual investors off track. -Embezzling fees on loans he brokered.

About the Author

Courtney Pilchmann

Courtney Pilchman is a certified criminal law specialist who was a Deputy District Attorney for over six years prior to becoming a criminal defense attorney. She was a member of some of the most elite prosecution units including crimes against children, family violence, and sexual assault. She pr...

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

Contact Us Today

Pilchman & Kay, APLC is committed to answering your questions about domestic violence, federal crimes, fraud crimes, sex crimes, violent offenses, and white collar crimes, law issues in California.

We offer a free consultation and we’ll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.

Menu