Suspected Head Of Alleged $100M Mortgage Fraud/Flipping/Ponzi Scheme Admits Screwing Lenders, Investors, Says FBI Agent

In Sacramento, California, News10.net reports:

• An FBI agent investigating a suspected $100 million real estate Ponzi scheme said the man at the center of the probe admitted deceiving his investors. Lawrence Leland "Lee" Loomis, 52, is the founder of Loomis Wealth Solutions and several related companies that the FBI and IRS believe defrauded hundreds of investors and lenders in a multi-layered investment scheme.

• Among the allegations is that Loomis lulled investors in his NARAS fund into thinking their money was safe by sending them false statements indicating a steadily-increasing balance. Loomis' literature promised a 12% annual return.

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• [FBI special agent Kathleen] Nicolls said Loomis and his associates approached new home and condominium builders in California, Nevada, Arizona, Colorado and Florida and bought distressed properties in bulk at substantial discounts. In an almost simultaneous transaction, Loomis would then sell the properties to his investors at up to double his cost, she said. Bank financing was obtained using inflated appraisals and fraudulent loan documents with Loomis and his associates pocketing the difference, according to Nicolls.

• Victims of the scheme told News10 Loomis promised to cover their mortgage, taxes, insurance and homeowners dues by placing tenants in the properties they purchased. In addition they were promised a payment of several hundred dollars a month.

For more, see FBI: Fraud Probe Target Admits Deceiving Investors.

Go here for FBI special agent Nicolls' affidavit (at page 9, and Exhibit A attached thereto).