Timeline: Sonoma Valley Bank’s collapse
By The Press Democrat, Santa Rosa, Calif. | |
McClatchy-Tribune Information Services |
Here is a timeline of the allegations, which are laid out in an indictment unveiled Thursday by the
Prosecutors allege Madjlessi, Lonich, Cutting and Melland conspired to have Madjlessi bid on the loan and regain control of the project, in violation of
Madjlessi seeks a loan for 101 Houseco from Cutting and Melland. The two bank executives authorized the loan, even though they allegedly knew that Madjlessi and Lonich were the true borrowers and that House was a straw borrower, according to prosecutors. Cutting and Melland also knew the loan would likely violate the bank's legal lending limit to Madjlessi, prosecutors alleged.
101 Houseco becomes the winning bidder for the defaulted IndyMac loan. It paid
2009 to 2010 -- In a bid to refinance the loan, Madjlessi and Lonich convert the condo project into an apartment complex by purchasing condominium units, allegedly using straw buyers. "Cutting helped accomplish the purchases by issuing letters on
101 Houseco settles the civil lawsuit filed by IndyMac against Madjlessi over the defaulted loan and forecloses on
___
(c)2014 The Press Democrat (Santa Rosa, Calif.)
Visit The Press Democrat (Santa Rosa, Calif.) at www.pressdemocrat.com
Distributed by MCT Information Services
Wordcount: | 538 |
Four indicted in Sonoma Valley Bank collapse
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News