Former financier William Hogarty was set for a preliminary hearing Monday on allegations of attacking a former roommate at his Livermore mansion. Instead, he was led from the courtroom in handcuffs, facing 12 counts of real estate fraud, three counts of criminal conspiracy and one count of perjury.
That's in addition to recently being added to a a civil case filed by nearly two dozen people who claimed he defrauded them.
Hogarty, 49, is the owner of the now defunct Pleasanton-based OF Lending, which claimed to do short-pay refinancing, allowing homeowners who were underwater on their homes to renegotiate with their banks.
The perjury charge stems from Hogarty's recent bankruptcy hearing, in which he was allowed to withdraw his filing by mutual agreement with the federal court.
Hogarty declared bankruptcy in 2011, which blocked him from being added to the civil case, which was filed by former clients.
The criminal case against Hogarty and three co-defendants is now being handled by Alameda County's real estate fraud division. A court filing in Hayward stated Hogarty lied under oath to U.S. Bankruptcy Attorney Margaret McGee regarding his financial assets and interests.
"At the hearing, Defendant Hogarty committed perjury when he testified that he 'gave out $421,000' refunds to clients," Alameda County court documents say. "Based on the foregoing investigation and OFL financial records collected by the U.S. Department of Justice - Office of the United States Trustee from Defendant Hogarty, he did not distribute $421,000 in refunds."
The documents also claim Hogarty and co-defendants James Allen Rivera Jr., Gregory Wayne Lomba and James Torpey conspired to defraud people of their property, that they conspired to commit false advertising, and conspired to collect advance fees.
The four are also charged with 12 counts of grand theft, for taking more than $69,000 from clients who hoped to save their homes.
An inspector from the Alameda County District Attorney's Office "learned from former OFL employees that when Defendant Hogarty needed funds to pay for his overdrafts, mortgage, yacht or other personal expenses, Defendant Hogarty would instruct employees to pay for such expenses from his OFL bank accounts." The inspector "also learned from former OFL employees that OFL bank accounts were consistently overdrawn $80,000 to $100,000 and OFL received daily banks regarding overdrawn checks, court documents say."
A second inspector "determined that 66 OFL victims paid a collective total of $369,326.79 in advance fees to Defendant Hogarty and/or his OFL associates for a reduced mortgage in the SPR program," according to court documents. "All 66 victims were unsuccessful in their efforts to obtain a reduced mortgage in OFL's SPR program and only 8 out of the 66 victims received a partial refund totaling $26,875 from Defendant Hogarty and his company OFL."
In January 2010, Hogarty appeared on a Bay Area television show, "View from the Bay," where he touted his company, saying he'd saved one woman $370,000 by doing a short-pay refinance. On the show, Hogarty advised people to never submit false or untruthful information.
"The truth is always best," he told the show's hosts.
In the civil case, 22 people have claims under the lawsuit that now includes Hogarty. Virtually every employee of the company was named in the suit, including both Hogarty's wife, Christy, and his ex-wife, Micaelanne Hogarty -- along with Riviera, Tiffany Carr and Lomba. That case alleges clients paid upfront fees ranging from $1,200 to $12,000, for the company's short-pay refinancing services.
Hogary still faces the aggravated assault charge, in which his former roommate claims he was choked until he nearly blacked out. Hogarty's 12,978-square-foot mansion was also the location of a number risque parties.