More Hot Water For Crisp & Cole In Alleged Bakersfield Flipping Operation

KGET-TV Channel 17 in Bakersfield, California reports:

• "The California Department of Real Estate has filed a formal accusation accusing David Crisp and Carl Cole and their now-defunct realty firm of fraud. The accusation names Crisp, Cole, the Crisp & Cole firm, Tower Lending, and several others with whom they allegedly performed unlawful real estate transactions. The action could result in the revocation of the licenses of the accused. [...] In one instance, the accusation says, Cole falsely claimed he was buying a house in which to live. In fact, the accusation says, he intended to sell it. [In another instance] Crisp told one mortgage company that a woman was an employee of Crisp, Cole and Associates to help her get a loan, the accusation says. She never worked for the company, the claim says."

Crisp, Cole & Associates misled lenders on more than $12 million worth of loans, state regulators said in an accusation filed Monday.

For more, see State accuses Crisp & Cole of fraud.

For a copy of the formal complaint filed by the State of California with the Department of Real Estate, see In the Matter of the Accusation of Crisp Cole & Associates, et al.

For the Bakersfield Californian stories, see Firm's troubles mount (State agency alleges fraud, 'dishonest dealings' in filing) (Reportedly, staffers, family members, business associates and customers owe $48.2 million on defaulted or foreclosed first loans as of Wednesday, according to an ongoing Californian tally) and Crisp, Cole allegations explained (Regulators say case is among largest of its kind in region).

For subsequent KGET-TV stories, see:

• Crisp, Cole & associates duck cameras following DRE accusation (TV report can be seen here)

• Local real estate community abuzz about DRE's accusations (TV report can be seen here)

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In a related story, two homes that were originally bought for around $1 million each and that may have been involved in the alleged flipping operation involving David Crisp and his associates were recently sold at trustee's (foreclosure) sales at big losses to the mortgage lender. The reported estimated loss to the foreclosing lender was $350,000 in one case, and $400,000 in the other. Two more Crisp family-owned homes are scheduled to be sold today. For more, see Some Crisp family properties sold.

Go here to watch the recent KGET-TV Channel 17 report; and here for other posts and links to media reports on the alleged flipping operation involving David Crisp, Carl Cole, family and associates.