Paulette Pony

Paulette Pony, a former real estate sales woman, and her brother Eric Pony have been accused of forgery and lying to sell high mortgages that people could not afford. Paulette's real estate license was taken away from her in December 2007 because she was charged with felony conspiracy charges and because she failed to disclose a forgery conviction.

Paulette was a secretary for a company called Lifetime Financial. She helped to cheat possibly hundreds of people out of thousands of dollars and in a a few cases, their homes. The victims were called by people claiming they worked for a company called Lifetime Financial and were told that they would be able to "refinance their homes and cash out funds at fixed interest rates". But instead, they got mortgages that were so expensive that it exceeded their incomes.

• Topix.net: Paulette Pony
• Google News: Paulette Pony
• LA Times: State breaks up alleged sub-prime fraud ring (March 19, 2008)
  • "As the mortgage crisis worsens, a growing number of fly-by-night companies are employing utterly brazen tactics to push homeowners into illegal and unconscionable loans," California Atty. Gen. Jerry Brown said. "The illegal sales practices of these companies . . . included psychological pressure, forgery and outright lies."
• PE.com: S.B. County makes arrests in suspected mortgage fraud ring (March 18, 2008)
  • "The State attorney general's office said it has shut down a complex lending scheme by obtaining a court order to freeze all of the related companies' real estate and bank accounts. It also seized cars and real estate worth millions of dollars owned by Eric Michael Pony, 25, the Tarzana man who is suspected of headed the operation"
• Reuters: Calif. sues six lenders for predatory practices (March 18, 2008)
  • "The defendants used forged loan documents and "bait and switch" tactics to "ensure that loans went through at onerous terms which were never disclosed to victims prior to the close of escrow," the lawsuit said."
• The Sun: Lending scam alleged (March 18, 2008)
  • "Prosecutors allege the lending companies would call their victims late at night and would forge signatures - sometimes blatantly mispelling names."
• CBS2.com: Attorney General Shuts Down 7 Lending Companies (March 18, 2008)
• FOX6.com: Massive Mortgage Fraud Hurts Thousands in California (March 18, 2008)
• Mercury News: Prosecutors shut mortgage firms accused of preying on homeowners (March 18, 2008)
• Business Week: California mortgage fraud ring busted (March 18, 2008)
• LA Times Blogs: Jerry Brown discovers mortgage fraud (March 18, 2008)