According to the indictment, Loomis used Michael Llamas, 27, of Tracy, and Peter Woodard, 54, Ventura, to approach builders of new homes and developers of condominiums to purchase investment homes in bulk at substantial price discounts ranging from 30 to 50 percent off under the terms of an “option contract.” Llamas and Woodard had no financial ability and no intention of purchasing the homes; rather, the homes were to be sold to Loomis’s nominee members at full price. Loomis then arranged for his mortgage company, Nationwide Lending Group (NLG), to sell mortgage loans for the nominees with banks and other lenders at the full price of the homes without disclosing the large price discount. Lenders were thereby misled into advancing loans that far exceeded their lending guidelines. Also, the large option contract price discount was used to conceal the lack of required down payments by nominee buyers. Loomis, Llamas, and Woodard split what remained of the price discount after subtraction of the fake down payments and certain fees.
I do not see this as black & white as you do. M.L. would have been 21-22 years old when this took place. M.L. approached builders looking for a discount. M.L. was working for Loomis and in all reality did not vilolate as alleged. Obviously anyone with 1/2 brain knows anybody at that age did not have the financial means to finance these deals including the builders. Notice Loomis had arranged for his mortgage company to sell morgtage loans. The more I look the more I see M.L. as being used by loomis for his own personal gain. The indicment against M.L. almost looks like they need more witnesses IMO.
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