Monday 22nd, December 2014

Kayden Kross Faces Felony Charges In Mortgage Scam

Thursday 18th, September 2008

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Adam & Eve contract performer, Kayden Kross is facing felony charges in a mortgage scam involving investments the 23-year-old- XXX star made on two foreclosed homes. The charges Kross faces include grand theft (Sec. 487(a) of the California Penal Code) and violations of the Civil Code involving contracts for purchases of home equity (Sec. 1695.3). Kross is scheduled to be arraigned at the Downtown Sacramento Courthouse on October 14 at 10:30am.

The story as, as reported on Scottfayner.com, says that following an FBI investigation, the charges were filed with the Sacramento Superior Court August 6. Upon returning to Los Angeles after a promotional trip to New Zealand, Kross was arrested at LAX.

A source for Scottfayner.com offered alleged details relating to the case and charges, and this report appears on the Scottfayner.com adult information website:

A disabled Veteran and his wife, along with their four children, lived in a house they could no longer afford. So the house went into foreclosure.

Kayden Kross knows a mortgage broker, who in April of 2006 tells her of a family that needs help and would she like to do a foreclosure bailout on the house to both buy property and help out a family in need? Kayden says yes.

So now Kayden owns the house, and the family pays her rent.

Meanwhile, Kayden buys another house the same way, and takes a $30,000 loan on each house’s equity (at 125% interest) plus another $35,000 each to go into escrow accounts. In total, Kayden borrowed $130,000 against her new houses.

Then she vanished into thin air. The mortgage payments on the houses stopped being paid, and the family was kicked out. Meanwhile, Kayden went and sold the titles for the two houses for $10,000 a piece.

She now had $150,000 that didn’t really belong to her.

Kayden Kross spoke with the source for Scottfayner.com about the charges. “Yes, these are the allegations against me,” said Kross. “But there is no proof of it, and the court will agree. I’ve done nothing wrong. I was young and got caught up with a shitty mortgage lender. I didn’t do anything to that family, we were all pulled in to a fraudulent scam.”

Kross’ attorney Jon-Paul Valcarenghi, of the Sacramento firm of Rothschild Wishek & Sands, was quoted on AVN.com in relation to the case.
“We’re really at the initial stages of the case, so a lot of the details are unknown,” said Valcarenghi. “What I can tell you is that Miss Kross was 20 years old and financially inexperienced when she became the victim of two mortgage professionals that she naively trusted. At least one other young woman was similarly victimized, and we intend to investigate these allegations and vigorously defend Miss Kross.”

Pressed to define the term “mortgage professionals” and to describe how Kross was a “victim,” the lawyer chose not to offer more details. “Here’s why,” said Valcarenghi. “Only because of my limit on my ability to comment because of professional rules, but also because Miss Kross has not been arraigned in court. There has not even been a court appearance yet. I have not even seen the charging document from the court file, so I’m sorry that I can’t provide more details.”

It is reported that, at the time of her arraignment, Kross’ counsel will move to be tried separately from others being charged in the mortgage scam.

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