Abe Alizadeh’s financial woes at heart of federal indictment, documents show
He recited his up-by-the-bootstraps history, coming from
Twenty years later, he had forged a billion-dollar empire of
But it had begun to crumble in 2008, when he sought bankruptcy protection for his flagship commercial property development partnership,
"You were not focused, Abe, from what we're seeing,"
By then, Alizadeh knew he was also facing a federal investigation, in which
Last week, the years-long investigation of Alizadeh culminated with a federal grand jury indictment accusing him of cheating
Alizadeh, 56, of
Alizadeh and Weaver were arraigned Friday in
Four of the loans covered by the indictment were from
--A parcel of land in the
--A parcel in
--A piece of property at the northeast corner of
--Two parcels in The Promenade at Sacramento Gateway, a regional mall near
A fifth loan, from
The sixth loan came from the
In each transaction, according to the indictment, a copy of the fraudulent purchase contract submitted to the bank was also furnished to the appraiser "in order to influence the appraisal of the property to support the inflated purported sale price."
The banks loaned
He wrote checks to Placer Title in the amount of the purported down payment on the property but, in reality,
"Weaver delayed the deposit of some or all of
In this way, the indictment alleges, "
In some cases, to ensure that
In order to delay repayment of the loans, maintain control of the property and evade detection of the phony purchase price, the indictment states that Alizadeh periodically obtained a loan extension from the bank, which Weaver processed, making sure the extensions were recorded at the county recorder's office.
In Thursday's news conference, U.S. Attorney
In a prepared statement last week, Placer Title Chief Executive Officer
Weaver, who was with the company 17 years, resigned
About that same time, Weaver retained Portanova. Less than a month later, Alizadeh retained Segal as federal agents amped up their investigation.
The defendants are due back in federal court Tuesday, when a date is expected to be set for a status conference with U.S. District Judge
Call
___
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