A federal grand jury indicted 13 in the $19 million mortgage and loan fraud case concerning the collapse of Desert Sun Developments, once headquartered in Bend.
According to the indictments, DSD principals and other defendants caused financial institutions to lose more than $19 million. In total, five separate indictments were returned. Arraignments of all defendants are scheduled for December 16, 2009, before the Honorable Magistrate Judge Thomas Coffin in Eugene...
“The economic hit that a community like Bend takes in a case like this one is very real," said Arthur Balizan, Special Agent in Charge of the FBI in Oregon. "When a development company collapses under the pressure of fraud—as is alleged in this case—we are left with millions of dollars in losses, empty lots and abandoned buildings. Everyone loses.”
Read more at National Mortgage Professional Magazine.