L.A. Feds Indict Two Realty Agents, Two Appraisers In $40+ Million Loan Fraud

(revised 8-4-07; 8-8-07)
The Los Angeles Times reports:

• "Two high-profile Beverly Hills real estate agents and two licensed appraisers were indicted Thursday on charges of joining in a sophisticated scheme that lenders said cost them more than $40 million in fraudulent loans for homes in some of Southern California's most expensive neighborhoods. Joseph Babajian and Kyle Grasso, agents with Prudential California Realty, along with appraisers Lila Rizk of Trabuco Canyon and Scott Robinson of Dana Point, were each indicted on multiple counts of conspiracy, bank fraud and loan fraud. [...] Babajian and Grasso are also charged with money laundering."

For more, see Brokers to Westside elite accused of fraud (2 Beverly Hills agents and appraisers are indicted in a scam that allegedly inflated home prices and loan amounts).

For the L.A. Times follow-up story, see Two Beverly Hills agents suspended by brokerage.

Prosecutors filed a two part indictment. For Part 1, see U.S. vs. Babajian, et al - Part 1 (22 pages, .83 MB approx.).

Unfortunately, Part 2 of the indictment is a little too large for me to upload on this humble blog of limited resources. If you want Part 1 & 2, you can drop me an e-mail at HomeEquityTheft@yahoo.com and I'll be glad to send it to you (Be sure to put the words "U.S. vs. Babajian, et al - Part 2" in the subject line).

Alternatively, you can go directly to the document link on the U.S. Courts' PACER website and get it there directly (link #2 - "Part II Indictment" - 63 pages; approx 2.5 MB - $2.40 cost). PACER registration required.

Go here for the official FBI Press Release - Westside Real Estate Agents And Appraisers Indicted In Multi-Million Dollar 'Property-Flipping’ Fraud Scheme.
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