Former 21st Century Financial Lender Arraigned For $100 million Fraud!

By
Real Estate Agent with Premier Agent Network

Former Paso Robles lender Linda Ann Kennedy of the 21st Century "Hard Money" Financial is accused of fraudulant practices.  She allegedly swindled more than 1,000 victims.  At one time the company had over $100 million real estate portfolio.  Thank you Central Coast News for the great article.

http://calcoastnews.com/2012/07/paso-robles-lender-linda-kennedy-in-jail/

Paso Robles lender Linda Kennedy in jail

July 24, 2012

Former Paso Robles lender Linda Ann Kennedy of 21st Century Financial in Paso Robles is slated to be arraigned today on four felony counts in the San Luis Obispo County Superior Court.

Kennedy, 49, allegedly swindled more than 1,000 investors out of millions in a lending scheme involving hard money. In August 2007, when she closed the firm, the company held a $100 million real estate portfolio.

Hard money lenders specialize in short term, high interest construction loans that are often used as bridges to help a developer finish a project. Loans are based on the value of the underlying asset rather then the borrower’s credit rating. These kinds of loans are primarily funded through private investors.

Following an extensive four-year investigation by the California Department of Corporations and the San Luis Obispo County District Attorney’s office, Kennedy was arrested on July 16 in Tennessee. She was later extradited back to California and booked into the San Luis Obispo County Jail with no bail.

The district attorney’s office charged Kennedy with four felony counts and ten special allegations related to fraudulent practices in the offer and sale of securities involving “hard money” loans in real estate projects located primarily in San Luis Obispo County in a criminal complaint filed in March 2012.

The San Luis Obispo County Superior Court has frozen her personal assets, including real estate, bank accounts, all other financial accounts, vehicles and any and all other things of value, whether the assets have been specifically listed or identified or not. The court orders prohibit anyone from selling or secreting these assets.

In Feb. 2011, Kennedy returned to Paso Robles for a short time after fleeing to Costa Rico in 2009.

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Rainmaker
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Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Mike:

Interesting post. It seems like it has take a long time to get these guys. 

July 25, 2012 03:50 PM #1
Rainmaker
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Mike Hendrickson
Premier Agent Network - San Luis Obispo, CA
Fine Homes, Short sales, excellent client services

It has taken a long time!  I wonder if the victims will get any money back?

July 26, 2012 09:28 AM #2
Anonymous
Anonymous
unknown

Surprizing that no one who invested considered checking the Department of Real Estate or Department of Corporations BEFORE a) they invested money b) when they were recieving high rate of return on their investment. Not excusing if wrongdoing is found, but many be all were abit greedy. By the way, I lost alot of money too.

August 04, 2012 08:25 PM #3
Rainmaker
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Mike Hendrickson
Premier Agent Network - San Luis Obispo, CA
Fine Homes, Short sales, excellent client services

I'm sorry to hear that!  I wonder if we are going to see more regulation or some type of insurance?

August 06, 2012 08:55 AM #4
Anonymous
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Whitty

Part of the problem with more regulations is tat you must have trained personel to see that laws are followed. /it is obvious in the cases now in Paso Robles that some private lenders had been audited and had area's of concern Unfortunitly most auditors are more interested in making sure the 'Trust Account' is in perfect balance. Insurance? I do believe lenders can insure every loan they make (not sure on private money). However, that just means the preimums are past on to the borrower. I don't see investors getting money back with the fall of real estate as we see it now. Nor do I expect the values to start going up again for some time, no matter how low interest rates go.

September 04, 2012 08:14 AM #5
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Mike Hendrickson

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