S. California Entrepreneur Pinched For Allegedly Lying To Bankster To Score Fraudulent Short Sale; Conveniently Failed To Disclose He Just Sold His Business For $7.5M+ Prior To Seeking OK To Unload Underwater Home For Less Than Mortgage Debt, Leading To $586K Lender Hit: DA

From the Office of the Orange County, California District Attorney:

• The former co-owner of the clothing brand RVCA is scheduled to be arraigned [] for committing short-sale fraud of his home and causing a total loss of over $500,000 to the lender.
  
  Conan Hayes, 40, Topanga, is charged with one felony count of grand theft with a sentencing enhancement allegation for property loss over $200,000. If convicted, he faces a maximum sentence of five years in jail. He is out of custody on $586,245 bail and is scheduled to be arraigned Monday, May 4, 2015, at 8:30 a.m. in Department C-55, Central Justice Center, Santa Ana.
  
  Hayes was co-owner of the surf clothing brand RVCA and sold his interest in the company for over $7.5 million in July 2010. In October 2010, Hayes is accused of applying for a short sale of his home with his lender, Bank of America.
  
  Short sales are a hardship based program offered by mortgage lenders to assist distressed homeowners who have suffered a financial hardship. If a property is sold pursuant to a short sale, the buyer avoids foreclosure and the lender agrees to settle the homeowner’s debt for the amount of the sale.
  
  In March 2011, Hayes is accused of obtaining short sale approval from Bank of America by falsely claiming that he lost his position at work and was currently unemployed. He is accused of failing to inform the bank he had sold his business for over $7.5 million, causing $586,245 in property loss to the bank as a result of the fraudulent short sale.
  
  Deputy District Attorney Megan Wagner of the Major Fraud Unit is prosecuting this case. .

Source: Former Co-Owner Of RVCA Charged With Short Sale Fraud Causing Over $500,000 Loss To Lender.