Santa Ana -- Six people were arrested this week in connection with a multi-million-dollar real estate "flipping" scheme, according to a press release issued today by the U.S. Attorney General Office in Los Angeles.
Investors were promised title to homes that could be easily resold but in fact did not have "clean" titles, were uninhabitable or were simply worthless, federal prosecutors stated.
There were more than three dozen victims who lost a total of $4.2 million, federal officials stated.
The six defendants,who are from Laguna Beach, Tennessee, Irvine, Huntington Beach and Florida, sold these properties for as much as $45,000, which they purchased for less than $10,000, according to federal officials.
The scheme ran from mid-2009 through mid-2010 and in some cases, the properties were condemned or there were issues with the titles.