FEB 21, 2013
Compliance Matters

Point Center Civil Trial Delayed

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MORAL

Some friend.  I wonder what she would do to her enemies.

OREGON MAN CONVICTED OF SUBMITTING FRAUDULENT MORTGAGE LOAN APPLICATIONS

FACTS

On Feb 8, David Ovist was convicted of the crimes of bank fraud and wire fraud following a 10-day jury trial. Ovist is scheduled to appear before U.S. District Court Judge Anna J. Brown on May 7, for sentencing on these charges.

Ovist was the owner of Oregon Mortgage Services Inc., Beaverton. The federal indictment charged that Ovist, acting as a residential mortgage loan broker, knowingly prepared, on behalf of eight borrowers, residential loan applications related to 15 different properties that falsified the borrower’s financial qualifications. The applications were then submitted by Ovist to eight different mortgage lenders with the intent that the lenders would approve mortgage loans for those properties based upon the false financial qualifications provided in the loan applications. The jury convicted Ovist of 12 of the 15 counts in the indictment.

At sentencing, the maximum penalty for each of the three bank fraud convictions is 30 years in prison and a maximum fine of $1,000,000. The maximum penalty for each of the nine wire fraud convictions is 20 years in prison and a maximum fine of $250,000. The actual sentence will be determined under the Federal Sentencing Guidelines based, in part, on the total amount of losses suffered by the mortgage lenders as a result of the loans.  (usattyor21213)

MORAL

After a 10 day trial he may be looking at 10 years room and board.  Who knows?

 

THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.

AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE.

Comments (1)
Point Center Financial formerly filed for bankruptcy late in the afternoon of February 19 as Orange County Superior Court Judge Perk was hearing motions. Point Center's counsel's claims that the bankruptcy had nothing to do with the current civil trial was inconsistent with the actual bankruptcy court filings where Point Center's investors were listed as unsecured creditors, including plaintiffs in the civil court case.

The automatic stay in the Point Center Financial bankruptcy (8:13-bk-11495-TA) was lifted by Bankruptcy Court Judge Albert last week whose Order is expected to be formally filed this morning March 27. The lifting of the stay will, as you are aware, allow the civil case to proceed. Motions and jury selection should be completed by the end of this week so that opening statements can be heard early next week.

Assemblywoman Diane Harkey, wife of Point Center Financial CEO Dan Harkey, has been asked by investors to recuse herself from the 2014 California Board of Equalization race and resign from office pending the outcome of the civil trial. Investors believe, and there is documentation to support investors concerns that Assemblywoman Harkey has a conflict of interest. The contentions that her campaign seat was funded largely from income derived from Point Center managed assets frozen to investors will be examined in court.

The receiver mentioned in your original post was appointed as a consequence of a $2.7mm judgement awarded to lien holders against Point Center financial in an action related to the bankruptcy of one of Point Center's borrowers who sought protection after Point Center failed to fully fund its loan. (Please see: 08−04553−LT11, Adversary 09−90507−LT, and Brewer v Mi Arbolito 37-2007-00074230-CU-BC-CTL)

I am a Point Center Financial investor who has conducted deep research into the matters before both courts. More details are available at pcfinvestor.org.

Posted by PCF Investor | Wednesday, March 27 2013 at 11:28AM ET
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