Remember how everyone was getting out from under their underwater mortgages during the last recession by doing a “short sale” claiming they couldn’t afford to make the payments on a loan that was more than their house was worth? Well, that’s apparently what former pro surfer (and RVCA co-founder) Conan Hayes did. But according to the Orange County District Attorney’s office he wasn’t exactly straight up about his ability to make the mortgage. They are charging him with “one felony count of grand theft with a sentencing enhancement allegation for property loss over $200,000” according to a story in the Orange County Register. According to the story:
Hayes co-owned the surf clothing brand RVCA and sold his interest in the company in 2010 for more than $7.5 million, prosecutors say. . . They allege that Hayes got the bank to approve the short sale by falsely claiming that he lost his job and was unemployed. But, they say, he didn’t tell the bank he made millions of dollars in the sale of the company.
If found guilty Hayes could face a maximum sentence of five years in jail. He’s currently out on $586,245 bail. For a little more background check Beach Grit and this.
[Links: Orange County Register and Beach Grit]
