Even celebrities are now facing real estate problems with their high-end homes. A major L.A. real estate scam was exposed this week by the SEC. Countrywide executives may be in big trouble. These stories and more in this weekâs real estate roundup.
Celebrity Real Estate
Celebrities are facing the real estate price crunch like everyone else. Numerous celebrities have been unable to sell their homes for their original listing prices and have been forced to reduce the prices to attract buyers. Sharon Stone listed a home for $12.5 million back in 2006, but has so far been unable to sell the home, reducing its price to $10 million this week. Actors Frankie Muniz and Angela Bassett and singer Avril Lavigne have also recently had to drop the prices of their homes.
News
An Altadena woman was arrested for fraud tied to real estate last Wednesday. The woman, Jeanetta M. Standefor, operated a company under investigation by the SEC for fraud in the L.A. area, Nevada, and Georgia from 2005 to 2007. Standefor offered black investors ârisk-freeâ securities that would return up to 50% within just 45 days, claiming the money raised would help homeowners avoid foreclosure. Some of the money was repaid to early investors to make the operation, Accelerated Funding Group, look legitimate, but Standefor kept the majority of the money for herself, spending $1.9 million on personal expenses. She has now been charged with 11 counts of wire fraud, mail fraud, and money laundering, carrying a maximum sentence of 180 years in prison.
Countrywide executives may now face civil suits from shareholders. L.A. Federal District Court Judge Mariana R. Pfaelzer ruled last week that Countrywide showed âa widespread company culture that encouraged employees to push mortgages through without regard to underwriting standards.â Fourteen former and current executives have been named in the suit, including Chairman Angelo Mozilo, who found himself in the midst of another scandal this week. Mozilo accidentally replied to an email from a frustrated client, calling the clientâs efforts to refinance his adjustable rate mortgage âdisgusting.â
Angryrenter.com, a website claiming to be a grass-roots movement among renters demanding that the government avoid bailing out distressed homeowners, has been revealed as a fraud. The site is run by Washington insiders Dick Armey and Steve Forbes, who certainly are not renting their residences. The company running the website took in over $10 million last year, much of it from unidentified donors.
Estate of the Week
Thereâs no house on it yet, but the estate at 10701 Bellagio Road in Bel Air comes with plans for one. The full estate covers over 4.5 acres, which you can cover with whatever sort of decoration you like, but if you follow the plan, youâll have a Georgian-style mansion with 7 bedrooms and 13 bathrooms. The price before building comes to $34.95 million.
Events
The Green West Expo, which we covered last week, continues today and tomorrow. More information here.
The 14th annual Pasadena Historic Highlandsâ Home Tour takes place this Sunday from noon to 4 PM. Tickets are $15 in advance, $20 at the door and proceeds will benefit neighborhood beautification, parks, and schools.
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