Arrests of Four Individuals in Nevada County Real Estate Scheme

September 22, 2012 jd

Pyramid Scheme Diagram — pyramid scheme diagram

Friday, September 21, 2012

Contact: (415) 703-5837

SACRAMENTO — Attorney General Kamala D. Harris announced the arrest Thursday of four suspects who have been charged with securities fraud, conspiracy and elder abuse for operating a Ponzi scheme that bilked dozens of investors of over $2.3 million.

The arrest declaration alleges that Gold Country Lenders, a real estate company in Grass Valley, engaged in a pattern of theft and fraud-related crimes for more than eight years. Investor funds were used to make interest payments to earlier investors or for projects in which the company’s owner had a financial interest.

“These defendants exploited their personal relationships with these victims and emptied their bank accounts,” Attorney General Harris said. “Schemes that target the elderly are especially heinous, which is why prosecuting fraud and elder abuse needs to remain priorities for law enforcement.”

Philip Lester, 65, and Ellen Lester, 65, who are married, surrendered to custody, and Susan Laferte, 58, and Jonathan Blinder, 58, were arrested on Thursday in Nevada County.

Philip Lester, CEO of Gold Country Lenders, and Laferte, the firm’s CFO, are being charged with 66 felony counts of elder abuse, securities fraud and conspiracy. Laferte is Philip Lester’s sister. They were booked at the the Nevada County Jail, with bail set at $600,000 each.

Ellen Lester is being charged with two felony counts of conspiracy and securities fraud and was booked at the Nevada County Jail with bail set at $50,000. Blinder is charged with four felony counts of securities fraud and was booked at the Nevada County Jail and released on bail.

From January 2003 to June 2011, Gold Country Lenders sold securities on specific real estate development projects, promising investors annual returns of 8 to 12 percent. These investments were supposedly secured by a first or second deed of trust on the property. In fact, some of the promised deeds of trust were never recorded, while others were recorded but subordinate to other loans, or were diluted by the repackaging and overselling of shares.

In October 2010, the Attorney General’s Office launched an investigation in response to complaints filed by numerous investors.

The arrest affidavit alleges that investors were not told that Philip Lester had a partnership interest in some of the development projects he sold to investors, or that some of the land targeted for development had significant toxic waste issues. Many of the victims are elderly and had known and trusted the defendants for many years.

Unbeknownst to investors, their investment funds were used to make interest payments to earlier investors or for purposes other than the development project they had invested in. For example, victims’ funds were diverted to purchase and operate the Auburn Valley Country Club, a prestigious golf course and clubhouse where the Lesters resided.

Agencies that assisted in serving today’s arrest warrants include the Grass Valley Police Department, the Nevada County Sheriff’s Office, the Riverside County Sheriff’s Office and the Department of Corporations.

“Protecting consumers and investors is at the forefront of the Department of Corporation’s mission,” said California Corporations Commissioner Jan Lynn Owen. “The Department of Corporations works diligently to strongly enforce and uphold California’s financial laws to the fullest extent.”

The Attorney General Office’s Special Crimes Unit conducted the investigation. The case will be prosecuted by the Attorney General’s Mortgage Fraud Strike Force, which was formed in May 2011 to investigate and prosecute crimes related to mortgage, foreclosure and real estate fraud.

Copies of the complaint and arrest declaration are attached to the electronic version of this release atwww.oag.ca.gov

Source: Attorney General’s Office

Related article in the Sacramento Bee – Hard money lending has sordid past in Nevada County

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Real Estate

Shortage of California Homes up for Sale

September 21, 2012 jd

After years of having too many homes and not enough buyers, real estate agents in California now have the opposite problem – too many buyers and not enough homes for sale.

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported Monday that its statewide inventory of unsold homes index for existing, single-family detached homes fell to 3.2 months in August from 3.5 months in July and 5.2 months in August 2011.
The index reflects the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered normal. When the number goes higher, inventory is plentiful and it’s considered a buyer’s market. When the number goes lower, the advantage goes to the seller.
Declining inventory helps explain why the statewide median price of an existing, single-family detached home rose to $343,820 in August, up 3 percent from July and up 15.5 percent from August 2011, according to C.A.R.
Nationwide, the inventory of homes for sale also has declined. In July, there was a 6.4-month supply of homes compared with 9.3 months in July 2011. The current number is in line with the long-term average, according to the NATIONAL ASSOCIATION OF REALTORS®. However, NAR also acknowledges there are “acute shortages” in places such as California, Arizona, Nevada, and parts of Florida.
Also constraining supply is the fact that so many homeowners are underwater – or owe more than their homes are worth – and unable to sell without taking a loss. As prices rise, more homes will increase in value, but it’s going to take time. Meanwhile, there are still a lot of homes that are not likely to come onto the market.
At some point, the balance will tip, but it’s hard to predict when. When banks decide prices are high enough, they will start unloading houses they have been sitting on, according to the chief economist for Trulia.

Read the full story

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Real Estate

Some Markets See Inventories Cut Nearly in Half

September 19, 2012 jd

Photo credit: http://blog.ivman.com/the-latest-funny-signs/

The number of homes for sale in the last year is falling the most in California, with eight of the top 10 biggest drops in inventories in the last year from metro areas in the Golden State. Many California metros are also seeing asking prices on the rise in the last year, too.

Nationwide, inventories of for-sale homes continues to remain at historic lows with 1.84 million units for sale in August, which is down from 18.68 percent compared to a year ago, Realtor.com reports in its August housing data report.

“Low inventories, combined with stable list prices, suggest that the overall market may be poised for additional growth,” according to a Realtor.com release of the August housing data on 146 markets.

The following markets have seen the largest decreases to their inventories in the last year:

1. Oakland, Calif.: -58.35%

2. Stockton-Lodi, Calif.: -45.03%

3. Fresno, Calif.: -43.13%

4. Sacramento, Calif.: -42.24%

5. Riverside-San Bernardino, Calif.: -41.75%

6. Bakersfield, Calif.: -41.36%

7. San Jose, Calif.: -41.10%

8. Seattle-Bellevue-Everett, Wash.: -41.07%

9. San Francisco: -40.15%

10. Atlanta: -37.02%

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

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Grass Valley

City of Grass Valley May Impose a No Smoking Zone Downtown

September 15, 2012 jd

The Holbrooke Hotel Eary Years — The Holbrooke Hotel Early Years Downtown Grass Valley

Smoking in the public area of the “Downtown Core of Grass Valley will be prohibited if an ordinance is passed by the City Council on September 25, 2012

The background information and reasoning behind the proposed ordinance is as follows:

“According to the 2010 U.S. Surgeon General’s Report, How Tobacco Smoke Causes Disease, even occasional exposure to secondhand smoke is harmful and low levels of exposure to secondhand tobacco smoke lead to a rapid and sharp increase in dysfunction and inflammation of the lining of the blood vessels, which are implicated in heart attacks and stroke.

The Surgeon General’s report, and many others like it, constitute indisputable evidence that establishing 100% smoke free environments is the only effective way to fully protect the population from the harmful effects of exposure to secondhand smoke. Smoke is not easily contained in designated smoking areas, especially outdoors. The smoking of tobacco is a form of air pollution, a positive danger to health, and a material public nuisance. The need to breathe smoke-free air should take priority over the desire to smoke.

Chapter 8.20 (City Ordinance) currently regulates smoking in a variety of public places. This ordinance would add to the list of places where smoking is prohibited all City-owned property, municipal parking lots, and public streets and sidewalks within the Downtown Core. “Downtown Cores is shown on the attached pdf file. This proposed amendment would decrease the amount of second hand smoke that travels into public spaces from adjacent areas where smoking is currently allowed, and would further assist peace officers who enforce the smoking ordinance downtown by providing clear direction as to the places where smoking is not permitted.”

The above information was provided by John Foster, Chief of Police, City of Grass Valley.

No smoking map

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Education, Nevada County Information

California Wildfires 2012

September 14, 2012 jd

httpv://youtu.be/asA_MGOQK24

No Time To Burn

This video shows breathtaking images of several of this year’s wildfires, including point-of-view aerial footage from specially-equipped California National Guard Blackhawk helicopters dropping hundreds of gallons of water on flames. It also takes viewers along with Cal EMA Secretary Mark Ghilarducci, California National Guard General David Baldwin and CAL FIRE Director Ken Pimlott as they visit a special “helitack base” near the massive Ponderosa Fire in Tehama County. There’s also footage from a strategy session with federal and state coordinators at a regional emergency operations center in Redding, Calif. Officials also included an interview with two residents of Manton, California who were evacuated from their homes, expressing the grim reality of destruction caused by the Ponderosa Fire.
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Government, Nevada County Information

Resources for Current Fire Information

September 13, 2012 jd

Resources For Current Fire Information

CAL FIRE Recorded Information Line For Nevada County, Yuba County and Placer County 530-823-4083

North San Juan Recorded Emergency Service Information 530-470-9713

Yubanet’s Fire Information Page Click here

CAL Fire’s Incident Information online Click here

InciWeb Incident Information System Click here

National Interagency Coordination Center Click here

Wildlandfire.com – A blog and information site updated by dispatchers and fire fighters on scene. Click here

Listen to KNCO live at 830am or on their website Click here
For all your real estate needs
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John J. O’Dell Realtor® GRI
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(530) 263-1091
Email jodell@nevadacounty.com

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nevada county fair

Cook Off at the Nevada County Fair

September 12, 2012 jd

“SAUSAGE, BRATS AND BEER” AND A “CLASSIC BARBECUE COOK-OFF” – PART OF THE FESTIVITIES AT THE DRAFT HORSE CLASSIC WEEKEND

“Sausage” event on Saturday, September 22; “BBQ Cook-Off” on Sunday, September 23

In between Draft Horse performances at the Nevada County Fairgrounds, September 20 – 23, take time to visit two tasty events happening on the grounds during the weekend – “Sausage, Brats and Beer” and a “Classic Barbecue Cook-Off.”
On Saturday, September 22, there’s a “Sausage, Brats and Beer” showdown, where six top chefs are paired with a sausage manufacturer to create incredible sausage dishes, and you get to sample the results. The challenge begins at 1 pm, with food sampling from 2 – 5 pm.

On Sunday, September 23, from 1:30 – 4 pm, watch as barbecue experts show off their cooking skills at the “Classic Barbecue Cook-Off.” Once they’re done cooking, you get to taste the treats – ribs, chicken, pulled pork tacos, sandwiches, brisket and a variety of delicious barbecue.

Tasting tickets will be sold at both events, and beer and beverages will be available. Additionally, live entertainment will be provided on Sunday by The Dyin’ Breed Band.

In addition to these two tasty events, the Harvest Fair is bustling with activities during the weekend, including live entertainment, Art at the Classic, Treat Street goodies, a clogging jamboree, a Western Trade Show, and visits to the barns.

The Draft Horse Classic and Harvest Fair runs September 20 – 23 at the Nevada County Fairgrounds. There are six performances featuring the magnificent Draft Horses – Thursday and Friday at 6:30 pm, Saturday at 10 am and 6:30 pm, and Sunday at 10 am and 4 pm.

For tickets to the Draft Horse Classic performances, or for details about the Harvest Fair activities, visit NevadaCountyFair.com or call (530) 273-6217.

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John J. O’Dell Realtor® GRI
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Real Estate

Obama Promises to Protect Morgage Insurance Deduction for the Middle Class

September 8, 2012 jd

President Barack Obama in his speech last night to accept the Democratic nomination for president said he will protect the mortgage interest deduction for middle-class families.

“I refuse to ask middle-class families to give up their deductions for owning a home … just to pay for another millionaire’s tax cut,” he said.

The president’s speech focused heavily on preserving the financial health of middle-class households, and he said that any deficit reduction and tax increases that he would seek in a second term would not affect households earning up to $250,000.

“I want to reform the tax code so that it’s simple, fair, and asks the wealthiest households to pay higher taxes on incomes over $250,000 — the same rate we had when Bill Clinton was president,” he said, “the same rate we had when our economy created nearly 23 million new jobs, the biggest surplus in history, and a lot of millionaires to boot.”

Alluding to the excesses in mortgage originations during the housing boom and the subsequent mortgage crisis, the president touted the rules that are now in place to protect households from taking out loans for which they don’t have the ability to repay. “We believe that when a family can no longer be tricked into signing a mortgage they can’t afford, that family is protected, but so is the value of other people’s homes, and so is the entire economy,” he said.

The president says in a Q&A for the September/October issue of REALTOR® Magazine, which comes out in mid-September, that he’s open to ensuring the rules don’t cut off the flow of mortgage credit to otherwise creditworthy borrowers.

“We will work with regulators to strike the appropriate balance for a healthy market that is open, fair and sustainable over the long term,” he said in the Q&A.

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Real Estate

When an Adjustable-rate Mortgage Makes Sense

September 7, 2012 jd

Photo credit Cleveland Seniors www.http://www.clevelandseniors.com/forever/headlines.htm — Photo credit Cleveland Seniors www.http://www.clevelandseniors.com/

When the housing market began declining, many people claimed that adjustable-rate mortgages (ARMs) were the cause. However, recently they’ve been making a comeback, especially among affluent borrowers

An ARM offers an introductory period in which the borrower pays a lower interest rate than with a fixed loan; after that, the rate can fluctuate up or down.

With rates near historic lows, the safety of locking in a fixed-rate appeals to many borrowers. But these borrowers are paying a premium for that security. The spread between rates on 30-year fixed-rate mortgages and the most-popular ARMs now stand at about one percentage point, more than double the difference just five years ago.
That means that homeowners who are planning to either move or pay off their mortgage over the next few years can save big with an ARM.
Borrowers can determine if an ARM is the right loan option for them by looking at their financial situation and the terms of the ARM. ARMs carry risks in periods of rising interest rates, but can be cheaper over a longer term if interest rates decline. An ARM may be a good option to consider for borrowers who plan to own the home for only a few years, expect an increase in future earnings, or the prevailing interest rate for a fixed-rate mortgage is too high.
Before deciding to apply for an ARM, borrowers should consider if their income is likely to rise enough to cover higher mortgage payments if interest rates increase; whether they will be taking on other sizable debts such as car loans or school tuition in the near future; how long they plan to own the home; and whether their mortgage payments can increase even if interest rates generally do not increase.

Read the full story

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nevada county fair

Enter Your Exhibits in the Harvest Fair at the Draft Horse Classic

September 6, 2012 jd

It’s free and all exhibitors will receive free tickets to a Draft Horse Classic performance

Entry forms are now being accepted for entries in the Harvest Fair, which takes place during the Draft Horse Classic, September 20 – 23, at the Nevada County Fairgrounds. The deadline to turn in entry forms to enter exhibits is 5 pm on Friday, September 14. It’s free to enter, and all exhibitors will receive complimentary tickets to the Friday evening performance of the Draft Horse Classic.

Entry forms are now being accepted at the Fair Office and on-line at www.NevadaCountyFair.com. There are more than 100 different categories to choose from, including fruits and vegetables, cobblers, harvest pies, scarecrows, a garden photo contest, jams, honey, cut flowers, produce characters, and birdhouses. There’s even a “Nature’s Oddities” category for any garden produce that shows an odd shape, color or other quality that makes it an oddity. So many fun categories to choose from!

There’s a division for youth and teens, which includes categories like apple face dolls, decoupage, Halloween masks, painted pumpkins, wreaths, table settings, and ceramics. Plus, there’s a Special People’s division for those interested in showing of their talents at the Harvest Fair.

Exhibitors must either submit paper entry forms at the Fair office or enter online at www.NevadaCountyFair.com between now and Friday, September 14. It’s free and it’s simple!

Complete descriptions of all Harvest Fair divisions and categories are available online at www.NevadaCountyFair.com, at the Fair’s Office on McCourtney Road, or by calling the Fairgrounds Office at (530) 273-6217.

The Draft Horse Classic and Harvest Fair runs September 20 – 23 at the Nevada County Fairgrounds. There are six performances featuring the beautiful Draft Horses – Thursday and Friday at 6:30 pm, Saturday at 10 am and 6:30 pm, and Sunday at 10 am and 4 pm.

In addition to the Draft Horse performances, the Harvest Fair is happening at the Fairgrounds throughout the event. Live entertainment, Art at the Classic, Treat Street goodies, a clogging jamboree, and visits to the barns make for a fun family day at the Harvest Fair. Plus, we’ve got a Sausage, Brats and Beer event happening on Saturday and a Classic Rib Cook-Off on Sunday.

For Draft Horse performance tickets or information about entering a Harvest Fair exhibit, call the Fair Office at (530) 273-6217 or visit www.NevadaCountyFair.com.

For all your real estate needs
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com

DRE#00669941

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