RW Hertel and Sons - California Builder - Fraud and more

Anyone have any solid info on this..most of what I see is consumer complaints, etc. Not alot from reputable sources. Sounds like they have done some covering up, etc.

From The Central Coast Housing Bubble Blog:
Comments include:
"Here is a SLO case # CV 050606 against RW Hertel for Fraud, Grand Theft, etc... he first tried to sue his own buyers for reporting the homes Leak and Have MOLD the judge ruled under the Anti-SLAPP against Hertel now Hertel is facing not only massive civil judgments for Fraud and Theft but trying to cover up defective homes and lying about it a story is being written in a Major Magazine on Hertel later this summer I got interviewed recently and it is going to be very revealing against Hertel many of his former and two current employee's have been interviewed the two current ones are quitting just before the story goes to Print and the State is again investigating him for FRAUD and LOAN SCAMS."

"Hertel going Bankrupt will NOT protect his or his partners assets he is now investing in Eagle Point Oregon and the Authorities in Oregon and Utah and elsewhere are working with State Contractors Board investigator and the IRS on his many scams. Sorry to learn so many got screwed by Hertel's cheap and Crappy homes but hang tough help is on the horizon and it will take some time but I suspect Federal Prison is in his future."

"Sounds like the same as RW Hertel & Sons who has built the most defective homes in SLO in the cities History I am told Hertel is on the Bankrupt track as well. As a well known Fraud Builder Hertel is doomed"

From ComplaintsBoard.com:
"Home Builder, RW Hertel & Sons of san Luis Obispo, CA built our home in the rancho Obispo Development today I learned most the homes have massive defects with Leaks, and TOXIC MOLD, my neighbor at 1720 Singletree Ct has Smith & Sons MOLD people at her home all day I asked what for and..."

"RW Hertel has been a lying crook for the last 5 years I have know him and his company. He has always cheated the buyer's SO BUYER BEWARE if you get a RW Hertel Home they are a Horrible Mess every project and home in Rancho Obispo is a total mess. The State Inspectors said they are the ..."

"RW Hertel what a fraud and lying scamer, MOLD again in Rancho Obispo this morning I noticed many and I mean many MOLD Trucks from SERVPO at 1708 Farrier Ct. when I asked what is happening, knowing the development has been declared a disaster zone from defective homes.."

"RW Hertel SCAMS Low income owners, more defective homes, more criminal investigations FRAUD, CON ARTIST, Housing RIP OFFS, SCAMS now i learned up in Dublin, CA at the Low Income housing of ARROYO VISTA RW Hertel tried to sneak into building low income homes but HUD discovered Hertel has lied and cheated far too many owners. That all the low income homes built in RANCHO OBISPO, down in San Luis Obispo are leaking have Mold and are NOT built to code so once more development he is a major suspect in trying to Fraud the Government and the poor low income people."

It goes on and on...someone let me know if they have info.

Mortgage Brokers Being Jailed for Fraud and Overstating Income

Two sentenced in loan scheme Vance salesmen falsified applications, Andrea Weigl, News Observer Two Vance County mobile home salesmen were sentenced Wednesday to federal prison time for a $19 million mortgage fraud scheme.

Richard D. Meador and Donald Scott Carroll were both employees of Donald Wayne Gupton, a Vance County businessman who operated several companies that state and federal agents have been investigating since at least 2003.

Prosecutors have said Gupton and his employees used a half dozen illegal means to falsify loan applications so buyers with bad credit could get loans. Ultimately, the borrowers couldn't afford the mortgages, and the banks foreclosed on the homes. Gupton, a Henderson businessman, has already pleaded guilty to federal charges and is scheduled to be sentenced next month. Gupton owned Dynasty Homes of Henderson, Superior House Center and Creative Real Estate and Manufacturing Housing Sales Center.

Meador, a manager at one of Gupton's companies, was sentenced Wednesday at the federal courthouse in New Bern to four years and five months in prison, followed by three years of probation. He was ordered to pay $1.2 million in restitution. Carroll, also a manager, was sentenced to 2 1/2 years in prison and three years of probation, and ordered to pay $1.4 million in restitution. Meador's attorney, Lewis Thompson III, said the restitution has to be paid jointly by the defendants and Gupton's companies.

Prosecutors say the scheme's tactics involved using the same mobile home as a trade-in for nine different buyers and giving money to buyers to make it appear they had down payments when they did not. Gupton's employees also created fake letters from borrowers' relatives saying they had loaned money for down payments when they had not, prosecutors say.

Carroll has cooperated with investigators since 2004, according to court filings by his defense attorney, F. Hill Allen IV, and Assistant U.S. Attorney Banu Rangarajan, who both sought a lighter sentence for Carroll. Allen said the judge did not reduce Carroll's prison sentence. "Obviously, this is a sad moment for his family and Scott," Allen said. "We certainly respect the court's decision."