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Accused embezzler Thomas Hastert was back in court Thursday, but Nevada County public defender Donald Lown said his office could not represent him, citing a conflict of interest.
With more than 100 alleged victims, it’s going to be difficult to find an attorney who does not know at least one of them, Lown said.
He told Judge Sean P. Dowling that he has been contacting local attorneys, but most also have a conflict of interest and cannot take the case.
“It might be difficult finding an appropriate person for a case of this magnitude,” Lown said.
Dowling suggested finding an attorney who also was qualified to examine real estate transactions.
About a dozen borrowers and investors were in court to hear the proceedings. Victim witness advocate Rod Gillespie will be coordinating communication between the many alleged victims and state Department of Justice special investigator Jason Nichols and prosecutor Keith Lyon.
Hastert is scheduled to appear in court again at 1 p.m. March 12. He asked to defer his plea and Dowling agreed.
Lyon spoke to the audience after the proceedings to explain the reason for the delay.
“We want to do it right the first time,” he said. “Sometimes it takes a while.”
The California Attorney General’s office issued a warrant for Hastert’s arrest after 73 criminal counts were filed against him in Nevada County Superior Court.
The charges include embezzlement, securities fraud, conspiracy and filing false documents. Many of his alleged victims are elderly, and one investor had hoped to generate income for his chronically ill son.
Hastert allegedly defrauded people between 2004 and 2007 while operating Loan Sense, his Grass Valley real estate loan firm, which advertised a higher rate of return on investments than what banks offered at the time.
Hastert is responsible for brokering and funding 270 “hard money” loans in Nevada, Placer, Sacramento, Yuba, Sutter and Butte counties, according to a declaration by Jason Nichols, an agent with the special crimes unit of the California Department of Justice.
Hard money loans typically are issued at interest rates higher than conventional commercial or residential property loans, Nichols said. The majority of Hastert’s loans involved multiple investors.
Hastert also allegedly set up fake investors called “straw people” to lead investors to believe the loans they were funding were secure, the attorney general’s office alleged.
In this case, Hastert is accused of securing $20 million from several investors, using the funds to broker hard-money loans to borrowers seeking to develop homes on real estate.
Bail has been set for $540,000. If convicted, Hastert could face up to 11 years and 4 months in prison.
To contact Staff Writer Liz Kellar, e-mail lkellar@theunion.com or call 477-4229.
With more than 100 alleged victims, it’s going to be difficult to find an attorney who does not know at least one of them, Lown said.
He told Judge Sean P. Dowling that he has been contacting local attorneys, but most also have a conflict of interest and cannot take the case.
“It might be difficult finding an appropriate person for a case of this magnitude,” Lown said.
Dowling suggested finding an attorney who also was qualified to examine real estate transactions.
About a dozen borrowers and investors were in court to hear the proceedings. Victim witness advocate Rod Gillespie will be coordinating communication between the many alleged victims and state Department of Justice special investigator Jason Nichols and prosecutor Keith Lyon.
Hastert is scheduled to appear in court again at 1 p.m. March 12. He asked to defer his plea and Dowling agreed.
Lyon spoke to the audience after the proceedings to explain the reason for the delay.
“We want to do it right the first time,” he said. “Sometimes it takes a while.”
The California Attorney General’s office issued a warrant for Hastert’s arrest after 73 criminal counts were filed against him in Nevada County Superior Court.
The charges include embezzlement, securities fraud, conspiracy and filing false documents. Many of his alleged victims are elderly, and one investor had hoped to generate income for his chronically ill son.
Hastert allegedly defrauded people between 2004 and 2007 while operating Loan Sense, his Grass Valley real estate loan firm, which advertised a higher rate of return on investments than what banks offered at the time.
Hastert is responsible for brokering and funding 270 “hard money” loans in Nevada, Placer, Sacramento, Yuba, Sutter and Butte counties, according to a declaration by Jason Nichols, an agent with the special crimes unit of the California Department of Justice.
Hard money loans typically are issued at interest rates higher than conventional commercial or residential property loans, Nichols said. The majority of Hastert’s loans involved multiple investors.
Hastert also allegedly set up fake investors called “straw people” to lead investors to believe the loans they were funding were secure, the attorney general’s office alleged.
In this case, Hastert is accused of securing $20 million from several investors, using the funds to broker hard-money loans to borrowers seeking to develop homes on real estate.
Bail has been set for $540,000. If convicted, Hastert could face up to 11 years and 4 months in prison.
To contact Staff Writer Liz Kellar, e-mail lkellar@theunion.com or call 477-4229.
