Two Are Convicted in Fraud Scheme But One May Appeal

A federal jury has convicted Lila Rizk of Trabuco Canyon and Kyle Grasso, formerly of Santa Monica, of conspiracy, bank fraud and loan fraud charges for their roles in a scheme that led to more than $40 million in losses at federally insured depositories. According to a report in The Orange County Register, Grasso, a real estate agent, also was convicted of three counts of money laundering. The duo were part of a scheme that obtained inflated mortgage loans on luxury houses, with Grasso earning commissions and other payments and Rizk, an appraiser, earning fees. Donald Marks, an attorney for Rizk with Marks & Brooklier in Century City, said, "We are very disappointed in the jury verdict. We think our case was very defensible. We think we raised reasonable doubt, and we think she is not guilty. We will continue fighting on her behalf." Mr. Marks said he would appeal the verdict. A lawyer for Grasso was not immediately available for comment. Eight others involved previously pleaded guilty.