Loan Sense accounts remain frozen

A week after the courts announced Loan Sense clients were supposed to see a four-month freeze lifted on their accounts, Thomas Hastert's brother still hasn't submitted the appropriate paperwork.

"I'm going to get an investigator to look into it," said Nevada County District Attorney Cliff Newell. The courts "don't have the original insurance binder. Hastert was supposed to have it Tuesday," Newell said.

On Jan. 18, Judge Robert Tamietti decided Mike Hastert, owner of Villa Mortgage of Walnut, California, would handle his brother's 100 Loan Sense accounts frozen since law enforcement raided the mortgage office in September. A court order has been signed but not issued, Newell said.

Thomas Hastert, an attorney and real estate broker, is under investigation by the state attorney general's office and the county district attorney's office for alleged real estate fraud.

"My understanding from the District Attorney is that it was over and everything was signed," said one lender who invested with Hastert and hasn't been able to access a final payment check of $10,000. The check was deposited in the bank the same day the freeze was made to the accounts.

"I've been calling every day to the bank and they're not releasing the funds," the woman said.

Attempts to locate Mike Hastert have been fruitless and Thomas Hastert doesn't return her calls, the woman said.

"You never get anything but the answering machine. Every place you go you hit a blank wall," she said.

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To contact Staff Writer Laura Brown, e-mail lbrown@the union.com or call 477-4231.