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According to court records on February 11, 2009 a To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. was filed by the FBI at the District Court in Sacramento, CA against Joshua Alan Gervolstad. The complaint alleges that he committed fraud in relation to five properties that were subject of refinances all funded by First Magnus Corp. It is alleged that appraisals were altered after being submitted to Gervolstad who was acting as a mortgage consultant so that nearly $1 million in funds could be taken from the closings by a company owned by him.
Gervolstad is currently serving time in prison following his 2008 conviction for writing bad checks (To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.) and had previously been convicted in 2006 of defrauding a Downey man in a real estate scam. He had worked for a number of companies as a loan officer and processor.

To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.Joshua Alan Gervolstad

The complaint alleges that an appraisal firm was hired by Gervolstad to carry out property inspections and that the appraiser supplied valuations, via email to Gervolstad for the properties as follows:

1. 1024 River Pointe, Lodi which was valued at $675,000
2. 566 Reddington Drive, Redding was valued at $485,000
3. 984 Montcrest Drive, Redding was valued at $310,000
4. 1026 Springridge Drive, Redding was valued at $387,000
5. 4638 Mayo Court, Redding was valued at $565,000.

In February and April 2006 First Magnus Corp supplied refinancing of the five properties. When the loan documentation held by First Magnus was examined by the FBI it was found that the valuations had been altered and now reflected appraised values of:

1. 1024 River Pointe, Lodi changed to $875,000 an increase of $200,000
2. 566 Reddington Drive, Redding changed to $705,000 an increase of $220,000
3. 984 Montcrest Drive, Redding changed to $525,000 an increase of $215,000
4. 1026 Springridge Drive, Redding changed to $537,500 an increase of $186,500
5. 4638 Mayo Court, Redding changed to $750,000 an increase of $205,000.

Examination of the settlement statements showed that in each case large payments were made at closing to a company owned by Gervolstad and in total the company received $925,000. The FBI investigation revealed that their were no liens recorded by the company against any of the properties. The loans were all closed at Chicago Title in Redding.


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