On Wednesday, it was announced that a financial executive and real estate broker were indicted for allegedly being involved in a massive scheme that ended up generating approximately $50 million. The money was acquired through fraudulently obtained loan proceeds. The indictment alleges that the defendants, Peter Cash Doye and Raquel Reid, defrauded lenders into making loans against four mansions in Del Mar and La Jolla, California. Then, the defendants supposedly used forged documents to make it seem that the loans had been paid off.
In return, this allowed the two individuals to acquire additional loans from new lenders, who believed that the properties were owned free and clear. The indictment explains that Doye worked as a senior executive with the real estate investment firm, Conix Inc. and Variant Commercial Real Estate. It is alleged that Doye negotiated the financing from lenders and investors based on lies about the collateral used to secure the loans.
To make the scam possible, the indictment claims that Doye, Reid and their co-conspirators created fraudulent real estate lien releases and submitted fraudulent records at the San Diego County Recorder’s Office. This seriously disrupted the chain of title for the properties. Reid notarized the documents to make them appear authentic.
Doye’s Arizona attorney, Jeffrey Greenberg, and his business partner, Courtland Gettel, pleaded guilty to being involved in the scheme. Gettel also admitted that he arranged additional fraudulent real estate transactions while awaiting sentencing. Gettel has agreed to accept a more severe sentence, due to his actions. Greenberg was disbarred in Arizona on October 6, 2016. He is scheduled to be sentenced on October 2, 2017. Gettel will be sentenced on October 17, 2017.
Peter Doye and Raquel Reid will make their initial appearances on September 21, 2017.