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Another hearing is scheduled today to determine who will oversee the loans for mortgage broker Thomas Hastert's company, Loan Sense, while the California attorney general and Nevada County district attorney continue to investigate the man for suspected real estate fraud.
Judge Robert Tamietti will preside over the hearing, set for 2 p.m. in Dept. 4 of the Nevada County courthouse in Nevada City.
Disgruntled borrowers and lenders have not been allowed into the hearings in the past because Hastert is a lawyer, and some documents involved in the investigation are protected by attorney-client privilege.
"Special procedures have to be followed when a search warrant is served on someone who is an attorney to ensure that none of that attorney's attorney-client privileged material is seized under that warrant," District Attorney Cliff Newell said.
Hastert and his lawyer, Craig Leri of Marysville, did not return phone calls on Thursday.
Leri and the courts have been unable to agree on a bonded and insured broker to service accounts frozen since law enforcement raided the loan office in September. More than 100 borrowers and investors have contacted law enforcement with concerns about Loan Sense.
Borrowers have continued paying their monthly mortgages despite the investigation, a freeze on accounts and no one to oversee loan payments.
Hastert and Leri rejected two licensed and insured brokers previously selected by the courts, stating they were unacceptable.
Hastert's first choice for a loan consultant declined to service the loans. The Union discovered the local loan office the woman worked at was owned by one of Hastert's associates.
Law enforcement agents still have file boxes full of loan documents being held as evidence. A team led by California Deputy Attorney General Mike Santoki, of the special crimes unit, is conducting a forensic audit of the evidence collected last year.
"It simply all has to be reviewed," Newell said. "There's a tremendous volume of documents."
Meanwhile, lenders and borrowers of Loan Sense have grown anxious, confused and angry at what they said feels like an exaggerated process to bring charges against Hastert.
"I speak for many when I say the Nevada County district attorney has let us down. He can investigate till the coasts are flooded. The crimes are clear and documented," wrote alleged victim Robert Brewer in an e-mail to The Union.
ooo
To contact Staff Writer Laura Brown, e-mail lbrown@theunion.com or call 477-4231.
Judge Robert Tamietti will preside over the hearing, set for 2 p.m. in Dept. 4 of the Nevada County courthouse in Nevada City.
Disgruntled borrowers and lenders have not been allowed into the hearings in the past because Hastert is a lawyer, and some documents involved in the investigation are protected by attorney-client privilege.
"Special procedures have to be followed when a search warrant is served on someone who is an attorney to ensure that none of that attorney's attorney-client privileged material is seized under that warrant," District Attorney Cliff Newell said.
Hastert and his lawyer, Craig Leri of Marysville, did not return phone calls on Thursday.
Leri and the courts have been unable to agree on a bonded and insured broker to service accounts frozen since law enforcement raided the loan office in September. More than 100 borrowers and investors have contacted law enforcement with concerns about Loan Sense.
Borrowers have continued paying their monthly mortgages despite the investigation, a freeze on accounts and no one to oversee loan payments.
Hastert and Leri rejected two licensed and insured brokers previously selected by the courts, stating they were unacceptable.
Hastert's first choice for a loan consultant declined to service the loans. The Union discovered the local loan office the woman worked at was owned by one of Hastert's associates.
Law enforcement agents still have file boxes full of loan documents being held as evidence. A team led by California Deputy Attorney General Mike Santoki, of the special crimes unit, is conducting a forensic audit of the evidence collected last year.
"It simply all has to be reviewed," Newell said. "There's a tremendous volume of documents."
Meanwhile, lenders and borrowers of Loan Sense have grown anxious, confused and angry at what they said feels like an exaggerated process to bring charges against Hastert.
"I speak for many when I say the Nevada County district attorney has let us down. He can investigate till the coasts are flooded. The crimes are clear and documented," wrote alleged victim Robert Brewer in an e-mail to The Union.
ooo
To contact Staff Writer Laura Brown, e-mail lbrown@theunion.com or call 477-4231.
