Friday, April 13, 2007

State files charges against Carl Cole and Tower Lending

As first reported by one of my loyal readers the DRE is investigating Carl Cole and Tower Lending. Hopefully this time around we get the real story and not another puff piece from the Bakersfield Californian.

From KGET TV 17:

BAKERSFIELD - The California Department of Real Estate took the first steps Friday to suspend or revoke the license of Bakersfield real estate giant Carl Cole.

The accusation also names Tower Lending, the Crisp & Cole mortgage affiliate.

Cole is the broker and officer responsible for Tower Lending, and he denies the accusations.

Last year, Cole separated from the mega-brokerage Crisp & Cole and opened his own office. The D.R.E. allegations do not name Crisp & Cole Real Estate.

The allegations concern mortgages on three Bakersfield homes, which the D.R.E. said are typical of more than 50 loans made illegally in 2005.

The D.R.E. said Tower Lending, under Cole's supervision, used an unlicensed broker to solicit prospective borrowers and lenders for real estate loans.

If proved, that's grounds for revocation of Cole's license, but Cole said he was as much a victim as anyone.

He said he hired the broker from another mortgage company and believed the man when he said he was licensed.

Cole said as soon as he discovered the man had no license, he fired him.

The allegations also said Cole signed papers claiming he had personally discussed the terms of mortgages with three homeowners, going over complicated legal issues outlining their rights.

But the DRE said Cole never met with those clients.

From KBAK:
State levels allegations against prominent realtor

29 Eyewitness News has learned that serious allegations are being levied by the state against one half of a high profile, Bakersfield real estate agency.

Bakersfield realtor Carl Cole, one half of the real estate team of Crisp and Cole, faces 10 serious code violations from the California Department of Real Estate. The case also includes the realtor's in-house mortgate company, Tower Lending.The state alleges Cole and Tower Lending violated a number of "California Business and Professions Codes."

The allegations include "negligence, fraud or dishonest dealing, substantial misrepresentation and failing to exercise reasonable supervision over the activities of his salespersons."The 14 page filing cites three specific real estate deals.

Cole can file a Notice Of Defense to appeal the charges. A hearing date would then be set.Cole and partner David Crisp recently got a tentative thumbs up for a $400 million high rise project on the campus of Cal State Bakersfield.


Rob Dawg said...

That's one small step for justice.

Anonymous said...

I hope these fuckers FRY!

Anonymous said...

"Cole separated from the mega-brokerage Crisp & Cole and opened his own office"

He told the Californian he was slowing down? They are horrible reporters!

Anonymous said...

Hang them high!

SD_suntaxed said...
This comment has been removed by the author.
Perfect Storm said...

DRE is just the beginning, now the IRS, FBI, State Depatement of Justice, believe me all these guys will jump on the wagon. I have seen it happen and I had a great view of the situiation.

Both the REALTORWHORES will be servicing Bubba in the pen.

Anonymous said...

These cock suckers are going down!

Perfect Storm said...

Oh yeah the Department of Corporations too. Not much teeth on the criminal side, but the fines can be steep.

Anonymous said...

I hope that Realtor clown Jason is reading this!

Bakersfield Bubble said...

I am also waiting for the IRS investigation!

Anonymous said...

Burn the realtorwhores, burn them,

Anonymous said...


Anonymous said...

Mother Fucking whore mother fuckers. Cock sucking bastard ass bitches, o yea Ben Jones sucks his mommies nipples.

Anonymous said...

If the Crisp & Cole workers do not want to go to jail they should turn over all the evidence, if they are smart they would do this quick.

AnalysisGuy said...

You've made my day!

Rob Dawg said...

Okay, everybody got in their one liner.

Looks to me like the leverage needed to make Carl "flip" on David. Remember this doesn't relate to anything Crisp has done. In fact while serious this is small stuff. Having a junior broker work up the deals under the broker of record isn't hard time for axe murder. No, they'll use this to start sweating Cole in order to nail jetboy.

Perfect Storm said...

Bakersfield realtor Carl Cole, one half of the real estate team of Crisp and Cole, faces 10 serious code violations from the California Department of Real Estate.

What are all ten of the code violations?

Bakersfield Bubble said...

I think you are correct Robert. This is only the first step in the process of going after these guys. IRS and FBI could be next.

These guys are down to just 17 employees (from 60+). They are slowing imploding on their own.

Their new building that was suppose to be occupied by the end of the year (per Greg Bynum) sits vacant with a "sublease" sign.

Bakersfield Bubble said...

"What are all ten of the code violations?"

One of the TV stations showed the 14 page report, however, they did not state everything in it. The local newspaper has, so far, ignored this story, hopefully they will publish more details in the days to come.

Perfect Storm said...

License Type:

Tower Lending

Mailing Address:

License ID:

Expiration Date:

License Status:

Original License Date:
04/13/05 (Unofficial -- taken from secondary records)

Former Name(s):

Main Office:

Licensed Officer(s):
01040694 - Expiration Date: 04/12/09
Cole, Carl L



01706711 - Diaz de Leon, Alfredo Jr

01504405 - Lewis, Jordan David

03/26/07 - H-2074 FR


>>>> Public information request complete <<<<

Perfect Storm said...

Further information regarding an administrative action involving a licensee whose record reflects an 'H' number may be obtained through the Sacramento Office at (916) 227-0906.

Bakersfield Bubble said...

Thanks Perfect.

I will call them on Monday.

Anonymous said...

I think Rob is absolutely correct. We all know that Crisp was Cole have been involved in all sorts of illegal activity. This is exactly how I would do it if I were the Feds or IRS. Cole will turn fast when facing hundreds of thousands if not millions of dollars in fines, and wait until they start talking about jail time.

I would be very nervous if I were David Crisp or his many followers who tried to dupe all those lenders. As far as his followers are concerned, I don't think "but I am just a kid and did what he told me" is going to cut it here. You were man enough to buy 5 houses and a 7 series beamer with cash back after closings so take your medicine.

Here is a life lesson for you, if it's too good to be true it probably is. Money isn't made that easy legally and if it is it won't last long.

Realestateslasher said...

I hope they can find a good Lawyer

Perfect Storm said...

I hope they can find a good Lawyer

I don't.

Lost Cause said...

Really big fish.

Fred said...

Questions?? I see Carl Cole has his house listed at 9513 Durand Oak Bakersfield for $ 499,000 and he bought this home back on 1/31/2006 for $620,000 with 100% financing. Is this one of those "Liar Loans"? Is he selling this as a "Short Sale"? I wonder if this is part of the DRE's fraud investigation?

xs10shell said...

How do I find the info on the Durand Oaks listing?

Bakersfield Bubble said...

Thanks for the tip Fred, I am going to look that one up...

Perfect Storm said...

Were only into the second chapter of this thing, wow I wonder what the epilogue will sound like. I guess the license revocation, pretty much puts a little damper on things. Oh what great reading this will be.

Also, why do we think jetboy is the bigger a-hole here, his mentor could be worse, just becuase he is old does not mean he is not twice the a-hole. Hell jetboy may have been the one to call the DRE, he did report his own father to the police.

Hey Carl, maybe jetboy is setting you up to cover his own ass, did you ever think of that, maybe he is putting you up for the fall. The guy turned his own father in, his own father dang, he probably even thinks less of you. He may be in negoiations right now to sell you out more.

Fred said... then you can put in the address and bingo, there it is. But strange thing, Carl Cole is not the listing agent???

Freedom said...

I wouldn't doubt that Crisp is trying to be the "whistleblower". All his properties are up for sale except for the one on Newquay. All properties are listed under other agents in his office. All with 100% financing. I'll pay him $100 each for his SLR and Ferraris when the time comes to auction them off too.

Freedom said...

I wouldn't doubt that Crisp was the whistleblower not knowing that he would also be investigated. All his properties are listed under other agent's name in his office, except for the house on Newquay ct. I hope his cars would be up for auction with his properties. I'll give him a buck for each car.

Bakersfield Bubble said...

I have featured that home on Newquay twice as a potential flop.

I noticed that it was recently refinanced.

redink93312 said...

Carl Cole, accused by the state of employing an unlicensed salesman

Inquiry leaves broker in trouble
BY JOHN COX, Californian staff writer
e-mail: | Monday, Apr 16 2007 10:25 PM
Last Updated: Monday, Apr 16 2007 11:35 PM

Prominent local real estate executive Carl Cole, accused by the state of employing an unlicensed salesman, on Monday denied being aware that the worker was unqualified to do the work he was hired to do.

Cole, co-owner of Crisp & Cole Real Estate, insists that he fired the salesman, Jayson Costa, upon learning that Costa did not have a real estate license.

"We were just lied to," Cole said. "You make an error, you take care of it, you fire the guy and you move on."

But Costa said in an interview Monday that Cole was fully aware he didn't have a license -- and that Cole at one point insisted that he get one fast. "I don't know how he's trying to say that he didn't know about it," Costa said.

The state Department of Real Estate last month accused Cole of allowing Costa to do the work of a licensed real estate salesman while working on more than 50 loans at Tower Lending, which Cole co-owns along with Bakersfield businessman David Crisp.

The state business and professions code bars licensed real estate brokers, such as Cole, from employing a broker or salesman who is not licensed. Cole said his attorney last week filed a response to the state's charges, and that he expects to be fined.

"It's one of those things, you say, 'Oh shoot, I should have been careful,'" he said.

The next step in resolving the case is a hearing, which a spokesman for the department said could be in Bakersfield or Fresno.

The department issues real estate licenses and, if violations occur, can suspend or revoke licenses and issue public reproofs. In 2006 the department revoked some 300 licenses.

While the department has no authority to levy fines, a spokesman said it has at times allowed real estate professionals to pay off a license suspension at a cost of $100 a day.

According to the department's allegations, Costa worked for Tower Lending between April 13, 2005, and Aug. 8, 2005. Not until Aug. 10, 2005, did Costa apply for a real estate license, department records show. He later received a license and worked as a loan officer.

Before starting at Tower, Costa worked at American Star Financial Group Inc., a Bakersfield real estate office. The department alleged last year that there, too, Costa was doing the work of a licensed real estate professional.

American Star owner Glenn Porter denied Monday that Costa did unlicensed work at his agency, saying Costa's duties were that of a loan processor, which does not require a license. But a spokesman for the department said officials there ruled otherwise, and American Star's license was suspended, though the spokesman did not know for how long.

Cole said bad timing accounts for much of the reason he and his staff failed to notice that Costa didn't have a license. He said Tower had just launched the month Costa and dozens of other workers were hired.

Cole said his staff "were checking" on the license when they got a call from the Department of Real Estate informing them that Costa had no license.

Tom Pool, a spokesman for the Department of Real Estate, said it was unclear what impact the case could have on homeowners and lenders whose loans Costa worked on.

"I don't know if it means anything" to the loans. "It's really (up to) the lenders. It may cause them to go back and revisit some of these. ..."

Cole said it was unlikely that the loans would be affected.

"As long as people are making their payments and everything's OK, (it's) really incidental," he said.

Both lenders listed in the three cases cited in the department's accusations against Cole -- Long Beach Mortgage and Sierra Pacific Mortgage -- could not be reached for comment Monday.


redink93312 said...

Funny thing is . . . .

Jayson Costa is hired as a loan officer at Home Savings Mortgage after leaving Tower Lending. He shows up to work there with a Brand New Lamborghini sports car!(Not your typical working man's car, especialy if you are a loan officer, bouncing around town!) Jayson was bragging that it was a payoff (or Hush Up Gift)from Crisp & Cole. He had that car for a couple months and traded it for a BMW 650i Convertable (about $130,000 car) and pocketed some cash. At Home Savings Mortgage, he was brokering Million Dollar deals for Crisp and Cole, along with other Fraud Deals that eventually and abruptly got him Fired there! How stupid or desperate the manager at HSM had to be to not notice that his Newly hired LO rolled up, Crisp Style in a New Lambo.

Bakersfield Bubble said...


Wow. I thought I had heard it all.

redink93312 said...

Not that Jayson is a Saint, but the comment from Cole and Glenn Porter (American Star Financial) not knowing that he wasn't licensed is Total Bullshit. Glen Porter had about 15 so called "Loan Processers" conducting loan originations without licenses at that time. These guys knew good and well these people weren't licensed, but felt they were Big Enough not to worry . . . and they were making so much money doing subprime loans with these types of LO's and paying them shit commissions because they were not licensed. The LO's will Roll on these guys if anything hits the fan, because they were taken advantage of as well.

And guess where Jayson Costa went to work after leaving Home Savings . . . It's so damm Funny!

American Star Financial!

Ye Ha!

Bakersfield Bubble said...

I have heard Mr. Porter go on and on about how bad others were...

Are you hearing any news about any new additional investigations?

I have bugged the Baltimore reporter about the fraudsters in the Crabtree piece I posted today and he wont tell me who they are. I have my own guess, but I want confirmation...

redink93312 said...

I heard that the investigations are pursuing leads of exploited Hipanic families and So Called "Big Investors" who like in the Crabtree Post, bought many properties using these families Credit information (straw purchase) Promissing them Big Money in a Flip, but then when the market callapsed they were left holding the bag and the properties. The ones being looked at (among others) are some Large Brokers with their own In-House Mortgage & Property companies.

One thing I heard was all they have to do is Follow the Cars!(& Boats, Motorhomes, Rec Vehicles) Cross checking Loan Officers & Realtors with DMV records is an Easy way to get a Short List of Potential Players!

redink93312 said...

Cars as in Exotics:

Lamborghinis, Ferraris, Bentleys, Land Rovers, SLR Mclarens, High End Bimmers.

They stick out like a sore thumb in Bakersfield, CA!

Can you see these guys driving a Kia when their cars are gone?

Bakersfield Bubble said...

I dont see them driving anything. I see them wearing pinstripes. LOL

redink93312 said...

If you are doing your research on Crisp & Cole, has the name Noami Lytle (not sure on the spelling of her last name) come up too? She has done loans for Crisp/Cole since their beginning at Kyle Carter Real Estate. She has been the center for many investigations at the various companies she has worked for in the last five years. She has bounced around town (leaving a mess behind her)but has loyally been with C&C all along. She was, or still is working for Tower Lending.

Bakersfield Bubble said...

Not that one. Many many others.

Just review the chain of title on some of their deals and you see the same people over and over again. Some houses were transfered numerous times in one year...

Anonymous said...

Sure these reporters "stink". They probably got a piece of the action to write these puff pieces.

One of the reporters went by the moniker "Misty Williams".

Hey momma, leave your stripper name at the strip club

Anonymous said...