Alleged Scam Artists Sued, Class Action Status To Be Sought

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Allegations of a massive mortgage fraud scheme involving as many as 400 investors and an estimated $1.2 billion of property were filed by Temecula attorney Richard Ackerman, on behalf of a client, in a civil lawsuit in Riverside County, California Superior Court on Friday, according to this story in the North County Times.

What I found notable in this story is:

• While the fraud allegations were made against a local network of alleged real estate scam operators by one alleged victim, the attorney for the alleged victim reportedly will be seeking class action status for the case, an attempt to enable him to pursue this network on behalf of all other potential victims who are similarly situated,
• The local county prosecutor has not, as yet, filed any charges in this case (although they are reportedly investigating the matter).

(I wonder if an attempt by a private individual to bring a civil lawsuit and seek class action status against those who are allegedly involved in potenially criminal conduct will be helpful or hurtful to a local prosecutor's criminal investigation of those same people regarding the same alleged conduct.)

For follow up story, see Real-estate investors bought on faith (1-13-07)

revised 1-29-07