Two Beverly Hills real estate agents indicted for their alleged participation in a mortgage fraud scheme have been suspended by their employer, Prudential California Realty, and ordered not to conduct any real estate transactions until the federal case has been resolved. . . .
Last week, the U.S. attorney's office in Los Angeles indicted the real estate agents, along with two licensed appraisers, on multiple counts of conspiracy, bank fraud and loan fraud.
The foursome allegedly participated in a complicated scheme that involved inflating the price of several homes in order to trick banks into funding mortgage loans that were hundreds of thousands of dollars higher than the properties actually cost, according to court documents.
If Babajian and Grasso are convicted, they also could be subject to disciplinary action by the California Department of Real Estate, including the revocation of their real estate licenses, according to state law.
Egads! Losing their real estate licenes! What is this, Saudi Arabia?