A federal indictment unsealed Friday charged seven people with running a multistate Ponzi scheme and related mortgage fraud scams that prosecutors said cost investors and lenders a combined $17 million.
The years-long investigation resulted in the arrest of 55-year-old Lawrence Leland Loomis. He and his father-in-law, John Hagener, 76, were charged with operating a fraudulent California-based investment fund that cost more than 100 investors more than $7 million.
Both men are from Granite Bay, a wealthy Sacramento suburb.
They pleaded not guilty Friday in federal court in Sacramento. Loomis was ordered held, while Hagener was freed on $1 million bond.
AP, 9/14/12; see also Sacramento Bee, 9/15/12; News10.net, 9/14/12.