Eastern District of California Blog

Former Realtor David Crisp Pleads Not Guilty

Former Realtor David Crisp pleaded not guilty when he appeared before U.S. Magistrate Judge Nita Stormes in San Diego Monday, according to a spokeswoman for the U.S. Attorney's Office.

Mortgage fraud indictments against Crisp and nine others, including his former business partner, Carl Cole, were unsealed Friday.

All but Crisp and former loan officer Jayson Costa entered not guilty pleas on Friday and were released until their next appearance in federal court in Fresno, which is set for Feb. 11. Costa pleaded not guilty but remains at Lerdo Jail. He has a detention hearing scheduled for Tuesday in Fresno.

Bakersfield.com, 1/24/11

"Ground Zero" For Real Estate Fraud

This month's California Lawyer Magazine, 12/2010 has a lengthy piece entitled "Making a Federal Case Of It:  U.S. Attorney Ben Wagner Prosecutes A Limitless Variety of Real Estate Scams In the Central Valley."  The story quotes Wagner as referring to the Central Valley as "ground zero" for real estate fraud.  It also includes a little discussion of the Gililland fraud case in Sacramento and the Crisp & Cole fraud case out of Bakersfield.  

5th Guilty Plea In Fraud Scheme Linked to Crisp & Cole RE

United States Attorney Benjamin B. Wagner announced today that Christopher Stovall, 37, of Bakersfield, pleaded guilty Thursday before United States District Judge Oliver W. Wanger, in Fresno, to four counts of mail fraud in connection with a mortgage fraud scheme involving Crisp & Cole Real Estate.

Four other persons, including Megan Balod, Leslie Sluga, Kevin Sluga, and Jerald Teixeira, have previously pleaded guilty in related cases.

In pleading guilty Stovall admitted from July 2005 to August 2006, he and certain individuals at Crisp & Cole and Tower Lending, and other individuals, executed a scheme to defraud mortgage lenders, including Long Beach Mortgage Co., Kirkwood Financial Corp., Wells Fargo Home Mortgage, SunTrust Mortgage Inc., and Fremont Investment & Loan, by submitting materially false and fraudulent statements in mortgage loan applications and related documents to obtain loans for straw buyers and others purchasing real property.

TurnTo23.com, 7/1/10

4th Guilty Plea In Crisp & Cole Mortgage Fraud Case

After the 4 p.m. arraignment, [Megan] Balod became the fourth admitted felon tied to the ongoing Crisp & Cole Real Estate investigation. Thirteen sites tied to the defunct Bakersfield firm were raided by FBI and IRS agents in September 2007. . . .

"The investigation is continuing," Assistant U.S. Attorney Sheila Oberto said after the proceeding, referring to the overall federal mortgage fraud case related to Crisp & Cole operations. Oberto said she could not comment on specifics of the open investigation. 

"Fourth Guilty Plea In Crisp & Cole Case Entered," 1/25/10, Bakersfield.com

Earlier Bakersfield.com stories on this case: 

"More Charges Filed In Crisp & Cole Case," 1/24/10

"Crisp In-Laws Admit To Wire Fraud," 1/7/10  

"Slugas Enter Guilty Pleas In Federal Court," 1/8/10

"Letter Supporting Forgery Claim Surfaces In Crisp & Cole Case," 9/3/08