Decision on frozen accounts delayed | TheUnion.com
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Decision on frozen accounts delayed

Investors in the alleged real estate fraud case involving Thomas Hastert waited fruitlessly outside a courtroom Thursday as a decision to free their accounts was delayed.

The accounts has been frozen since last month, when police raided Hastert’s Loan Sense office and seized a truckload of evidence. The raid came after numerous individuals, many elderly, complained they lost money through investments with Hastert.

“We didn’t go and look at (the homes), which was a big mistake,” said investor Cleona Duncan, waiting with her husband outside the courtroom.



The Duncans of New Castle, who invested $40,000 with Loan Sense for a speculative home project in Biggs, waited for more than an hour and a half during Thursday’s closed hearing.

The elderly investors are concerned about a lack of work on their home project.




“I’ve been encouraging people to come forward,” said Ron Robbins, president of Placer Foreclosure Inc. in Auburn, referring to individuals who may have been defrauded.

“Throughout the whole thing, he’s pretty much acted like he’s done nothing wrong,” Robbins said. “It appears that most of the loans he made were in violation of California law and weren’t fully funded.”

Grass Valley police, the county district attorney’s office, state officials, the FBI, the California Department of Real Estate and the California Bar Association have investigated Hastert since January.

Authorities have not charged Hastert with any crime. In a letter dated Sept. 25, Hastert assured Loan Sense investors that their money was secure and blamed police and state officials for problems in servicing the loans.

The next court hearing is set for Nov. 19 in Judge Robert Tamietti’s courtroom.


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