Posted on 12/01/2004 9:50:26 PM PST by NormsRevenge
HUNTINGTON BEACH, Calif. (AP) - A grand jury indicted a former city councilwoman and seven other people Wednesday for an alleged real estate scheme that involved converting apartments into higher-priced condominiums without the required permits for the changes.
Pamela Houchen, who resigned from the City Council in September, also was charged with corruption for allegedly concealing her ownership of an apartment building in a redevelopment district where she was prohibited from owning property under conflict-of-interest laws.
The former councilwoman, a real estate broker who also has served as mayor, is charged with 11 counts of mail fraud and seven counts of wire fraud for allegedly selling at least eight condominiums that she knew were fraudulently converted, according to the U.S. attorney's office.
Houchen, 47, will be issued a summons to appear in court later this month to be arraigned on the charges along with the seven other defendants, said Assistant U.S. Attorney Andrew Stolper.
"Imprisonment is a possibility for any and all of these defendants," Stolper said.
Houchen's attorney, John Barnett, did not immediately return a phone call seeking comment.
Philip Benson, 72, a former real estate broker in Huntington Beach who now lives in Hayden, Idaho, was the alleged architect of the scheme that prosecutors said relied on forged and backdated documents to deceive the buyers of condominiums, prosecutors said.
Also indicted were Harvey Du Bose, 63, of Santa Ana; Howard C. Richey, 78, of Hemet; and four Huntington Beach residents: Michael McDonnell, 38; Thomas Bagshaw Jr., 55; Jeffrey Crandall, 44; and Michael Cherney, 57.
Officials believe about 160 units in about 40 buildings have been illegally sold in the city since 1998. The violations were discovered when buyers were unable to sell or refinance their condos because their properties lacked permits.
Houchen is the second Huntington Beach councilmember to resign in the past three years amid allegations of misconduct. Former Mayor Dave Garofalo resigned after pleading guilty in 2001 to conflict-of-interest charges.
No mention of party affiliation, Hmmm.. :-?
Here's a little background from the OC Weekly.. HB has had a run of bad press as a result of the political critters infesting its gubamint over the last few years.
Houchen is latest shady figure to exit Huntington Beach City Council
Your little burgh has quite the reputation gubmint-wise, it would seem. lol ;-)
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