Investors, DA to meet in loan fraud probe |

Investors, DA to meet in loan fraud probe

People worried about investments with Thomas Hastert and his Grass Valley company Loan Sense hope to get answers Thursday when they meet with the county district attorney’s office and Grass Valley police.

So far, about 100 people have contacted Grass Valley police with concerns over investments with Hastert.

“We have talked to well over a hundred folks at this time They’re very nervous about where their investments lie,” said Capt. Rex Marks of the Grass Valley police.

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.

Police are investigating each individual case of concern. Many who have contacted the police are elderly and reacting in panic, Marks said.

“Not all have been identified as victims,” Marks said. Loan Sense clients won’t see the matter resolved overnight, because auditors need time to carefully analyze the seized documents, he added.

“It’s not your average Grass Valley investigation,” Marks said.

Thursday’s meeting for Hastert’s loan clients will be held at Grass Valley City Hall, 125 East Main St. Officials will update investors and borrowers on the status of the investigation and answer questions.

“Hopefully we’ll relieve some anxiety people are feeling,” Marks said.

On Sept. 21, local and state law enforcement agents seized documents from the mortgage company on Brunswick Road and are investigating allegations of real estate fraud.


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

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