A 58-year-old Newport Beach man who eluded authorities for two years before being arrested was sentenced Friday to more than 34 years in prison for stealing about $3 million in a real estate fraud Ponzi scheme.
Thomas Franklin Tarbutton was convicted Jan. 20, 2016, of 40 felony counts, including grand theft and securities fraud, involving 11 victims.
Tarbutton was extradited to Orange County in December 2013 following his detention by Panamanian authorities as he attempted to fly from Brazil, where he was living, to Costa Rica, according to Senior Deputy District Attorney Pete Pierce.
From 2004 through 2010, Tarbutton operated Irvine-based Villa Capital Inc., soliciting money from private investors for clients looking for loans from non-bank lenders, Pierce said.
The investors thought they were funding mortgages that would yield quick profits with a short turnaround, but in some cases the loans fell through and Tarbutton pocketed the money, Pierce said.
Some investors were given forged documents, making them believe the loans were guaranteed so that even if the borrower defaulted, they would get the property as security, Pierce said.
Tarbutton gave investors small interest payments from their initial investments to hide that the loans had not been repaid, the prosecutor said.
When the real estate market imploded, Tarbutton stopped all payments, Pierce said.
–City News Service
I paid Villa Capital after the downturn of the market over 20% of the principal amount having already paid 2 years of principal and interest payments. My 20% payment was with the agreement to file a full-reconveyance. I completed 2 home loan modifications and with no mention of the existence of a second deed of trust it was mistakenly assumed the reconveyance had transpired, however a recent title report reviled the original loan amount with Villa Capital was still attached to my home. I have been quoted unreasonable amounts to cure the error and additionally, long protected periods of time. If anyone has information and/or methods to remove this deed other the a slient title, please email me