'Mortgage Fraud Factory' Whirs Down With 10 Arrests

Lita Epstein

Federal authorities called Crisp & Cole Real Estate a "full-service mortgage fraud factory" at a press conference on Friday when the 56-count indictment was unsealed. Indeed, people will spend years recovering from the financial damage caused by Crisp & Cole Real Estate, whose owners were arrested Thursday on charges of fraud, money-laundering and conspiracy.

The indictment alleges conspiracy to commit bank, mail and wire fraud and to launder money from about 2004 to roughly 2007.

Charges vary for each of the ten people named including principals David Crisp (pictured left) and Carl Cole. Also arrested on Thursday were former employees Jayson Costa, Julie Farmer, Sneha Mohammadi, Mike Munoz, Robinson Nguyen and Jeriel Salinas. Cole's son Caleb Cole and Crisp's wife, Jennifer, were also indicted.

"Many people in Bakersfield [California] have lost their home as a result of this fraud, and many of them will spend years trying to repair the damage that has been done to their credit, as well as their personal lives," FBI assistant special agent Manuel Alvarez said in a press conference on Friday.