Showing posts with label Newport Coast. Show all posts
Showing posts with label Newport Coast. Show all posts

Tuesday, April 6, 2010

“Extreme” greed gets Newport Beach man 5 years

A Newport Coast man who committed mortgage fraud and filed for bankruptcy without telling authorities he bought 2 Ferraris and a Lamborghini was sentenced to 5 years in federal prison Monday.

Lorenzo Espinoza, 43, also was ordered to pay the Department of Housing and Urban Development restitution of more than $614,000.

In sentencing him, United States District Judge Stephen V. Wilson said Espinoza demonstrated  “extreme greed.”

Espinoza pleaded guilty in 2006 to conspiracy to defraud HUD, bankruptcy fraud, money laundering and failing to pay federal taxes. Prosecutors said he didn’t pay them for more than a decade and owed more than $5 million in taxes, interest and penalties.

Here’s how the U.S. Attorney’s office described the crimes:

  • Espinoza and his associates fraudulently purchased nearly 100 residential properties.
  • The properties were sold at inflated market values to straw buyers. Espinoza and his associates made the down payments and in some cases submitted bogus tax forms and paycheck stubs with the loan applications.
  • When the straw buyers defaulted on the home loans and the lenders foreclosed, HUD reimbursed the lenders for their costs. HUD’s losses came to $2 million when it sold the homes for much less than the fraudulent purchase prices.

The news release stated:

“In addition to defrauding lenders and HUD, Espinoza committed bankruptcy fraud in 1999 when he filed for bankruptcy and failed to tell the United States Trustee that he owned a Rolex Daytona watch, two Ferraris and a Lamborghini. In late 2002, Espinoza laundered the proceeds of his bankruptcy fraud when he sold the Ferrari automobiles for $127,500.

“Espinoza also pleaded guilty to willfully failing to pay income tax, admitting that he did not pay $199,053 due for the 1996 tax year. In court papers filed in relation to the sentencing, prosecutors pointed out that Espinoza had not filed tax returns for well over 10 years and owes the Internal Revenue Service more than $5 million in taxes, interest and penalties.”


Posted via web from The Newport Beach Blog

Wednesday, February 24, 2010

$87 million mansion coming to life

A mansion, a lake, stables and tennis court are shaping up at Villa del Lago, O.C. super agent John McMonigle’s $87 million dream home in Newport Coast.

Register staff writer Jeff Overley visited the project last week and shot photos showing the 16,700-square-foot home, lake and other features coming to life. (Click on Overley’s photos above to enlarge or click on his photo of the Gate House below right to see the entire slide show.)

Overley writes: 

“Though still unfinished and not open for viewing, the grounds were photographed last week through open gates and from hillsides below and above the property.

“Developed by John McMonigle of Monarch Estates, the Pelican Hill palace first made headlines in 2005, when its asking price was just $50 million. Even then, amid a roaring housing market, real estate experts doubted the 12.5-acre property could sell for such a towering sum.

“… Repeated price increases have raised eyebrows from commentators who suggest it’s an attempt to inflate the value. The project is also behind schedule – perhaps partly because of the housing downturn – with officials once promising it would be finished by summer 2007.

“As Monarch notes in promotional literature, the acreage is remarkable for the area. “In a place where land is scarce, Villa del Lago offers it in abundance,” Monarch says. However, the quantity of the land may exceed its quality – the view is mainly of city lights and canyon, with a sliver of ocean visible in the distance.”

Read the full report HERE!

For a map showing the priciest homes in Orange County, CLICK HERE!

Posted via web from The Newport Beach Lifestyle

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