Deal made with Real Property Lenders Jarmin and Jordan

June 18, 2015

justiceTwo days after the trial of Real Property Lenders of Paso Robles principals Rod Jarmin and Tammy Jordan began, a plea agreement was reached. A plea agreement the San Luis Obispo District Attorney’s office is attempting to have reversed.

In April 2014, Jarmin, 76, and Jordan, 53, were arrested in connection with a scheme in which they allegedly swindled more than 700 investors out of about $30 million. At the time, both defendants plead not guilty to seven felony counts of the sale of securities by means of false statements and omissions.

Under their company, the duo would entice locals to invest in projects that they knew were failing, under false assurances that investor monies were secure. The misrepresentation or the omission of facts when offering or selling securities is a felony punishable by up to five years in prison and up to a $10 million fine, per violation.

The trial started on June 8. On June 10, during jury selection, the defendants plead no contest and Superior Court Judge Donald Umhofer reduced the seven felony charges to misdemeanors. [Tribune]

Shortly afterwards, the district attorneys office filed a motion to reconsider, that alleges that Umhofer wrongly reduced the charges to misdemeanors before a plea was made.

During a hearing on Wednesday, one of the defense attorney argued that the district attorneys office agreed to reduce the charges to misdemeanors in a deal that would result in no further jail time for Jarmin and Jordan.

On July 22, the matter is slated to be decided.

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36 Comments

  1. nikita15 says:

    I don’t mean to offend anyone here, that being said. For the past few yrs I’ve read nothing but bs that people have posted regarding RPL, ok people let me inform you that 99.9% of the investors made bank with RPL some investors made 100,000 or more yearly from investments with this company, most made 25,000 a year, a few less in any case for yrs these investors made money but as soon as the RE market started falling and people started freaking out, RPL started foreclosing on properties that borrowers were not making payments on this foreclosure process was to protect the investors. How funny it is that no one is stating simple facts, RPL gave every investor documents and information in regards to how these investments work, not one single investor was mislead. Not to mention the owners of RPL spent a great deal of their own money to bring in the very best lawyers to protect the investors projects.
    so please before trashing 2 people you know nothing about get the facts, I truly believe the judge is correct in lower the charges and making the plea bargin,

    (0) 2 Total Votes - 1 up - 1 down
  2. sbjcl says:

    Outrageous!! They put a $5 million bail on Al then threw the book at him. These Jackals do the same thing and walk around on bail, buy good lawyers and get a slap on the wrist. How could a judge agree to this ridiculous plea. Dow needs to fire von Dolen immediately.
    Jarmin and Jordan need to be locked up.

    (12) 16 Total Votes - 14 up - 2 down
  3. mbbizpro says:

    I find it interesting that the DA and the Judge accepted the plea, especially if there was a highly winnable case that included felonious activity and caused people to lose vast amounts of money, especially in this county that appears to have been a hotbed of problems with private money lenders. The fact that the ADA appears to not have understood the issues in the case is not really believable to me either. I don’t have the facts, but, I am speculating that the case was weak and the ADA is trying to play CYA after the public outcry. In any case, everyone should remember this case during the next election for the DA. Either he has not properly supervised his staff in this case or is his office is misleading the public.

    (9) 13 Total Votes - 11 up - 2 down
  4. mbbizpro says:

    Two of the victims of this act were Jim Pope and Linda Gerpheide. Both were also included in litigation against Hurst Financial (Pope) and Estate Financial (Gerpheide). As I pointed out earlier, investing in private money mortgage is known to be extremely risky and that is one of the reasons that the returns are so high, exceeding 10-12% on a routine basis. Investors in those instruments should understand the risk, especially if they are serial investors in that or any particular type of investment. Many of those investors did very well during the run up in real estate values and lost much of it during the downturn, like we all did in various investments. There should never be misrepresentation of fraud in the sale of anything, but, perhaps the DA settled as the burden of proof that serial investors were misled may have been difficult to make happen.

    (-8) 14 Total Votes - 3 up - 11 down
    • Extremely Stoic says:

      Those investments are subject to market risk, the market took maybe 35/40 %, the rest of the loss was due to felonious activity. Felonious activity is not part of the risk

      (6) 12 Total Votes - 9 up - 3 down
      • mbbizpro says:

        How can you ascertain that?

        (-5) 9 Total Votes - 2 up - 7 down
        • Extremely Stoic says:

          I had investments with both Estate Financial and RPL. (Jarmin). I got money back on all three RPL investments. I was not a victim of any felony, but got back between 45 to 85 % on the three investments. The loss was due to the drop in the RE market. Got pennies back on the EF stuff, the bean counters and lawyers took most of what was left after the crooks stole most of the funds.

          That’s how I ascertain what I posted.

          (4) 8 Total Votes - 6 up - 2 down
          • mbbizpro says:

            I am sorry that you experienced those losses, but, that doesn’t tell me how it was attributed to fraud. Did they not distribute your investment to the builders as they indicated? Did the builders not finish the projects as promised and the properties foreclosed on because of that? Were the projects partially funded and not finished because not enough cash was raised to finish them? Many of us lost 50% or more of our investments in the stock market as well and property value on our personal residences and investment properties. That doesnt mean that laws were violated.

            (0) 8 Total Votes - 4 up - 4 down
            • Extremely Stoic says:

              Didn’t say it was due to fraud, just pointing out that the high risk didn’t include the risk of a crime being committed.

              You seem to be really worked up about all of this. I suggest you fire one up and relax.

              (2) 4 Total Votes - 3 up - 1 down
              • mbbizpro says:

                I don’t understand what crime was committed if not fraud. And no, I am not worked up at all. I just ask questions for clarification when someone makes statements. When someone declares that a crime was committed that insinuates that person should spend time in jail. From your responses, it appears that you lost money for an investment and you are willing to call people a criminal if they don’t make you whole. That just isnt a criminal activity if they do not.

                (0) 6 Total Votes - 3 up - 3 down
  5. kayaknut says:

    Your just learning that now?

    (0) 4 Total Votes - 2 up - 2 down
  6. Pelican1 says:

    Stealing 30 million from innocent people is a misdemeanor? Crime pays handsomely.

    (28) 32 Total Votes - 30 up - 2 down
    • mbbizpro says:

      I dont know anything about the legal findings and acknowledge that no material representations should ever be made. Having said that, these “investors” were sold mortgage securities with yields exceeding traditional mortgage securities by 300-400%. Mortgage securities of any type are far from safe investments as we all learned in 2007 and 2008. Those that pay 12% or more when most similar investments pay 3-4% should cause all types of alarms to go off. The folks that got taken participated in these investments knowing that there was risk involved to obtain those types of returns, or they would never had the ability to create enough savings to make investments with. They are victims of their own greed as much as they are victims of criminal activities.

      (-8) 22 Total Votes - 7 up - 15 down
      • TacomaRose says:

        @mbbizpro …

        Your flippant attitude is sickening. Go ahead and demonize the victims. Don’t you understand the concept of unethical business practices, let alone criminal ones?

        If you are a “bizpro” as you suggest, I wouldnt want to do any business with you

        My guess is you are Jarmin or Jordan or one of their close friends or associates who are trying to deflect the wrongfulness of their actions.

        People with your twisted thinking is what causes our society to circle the drain.

        I dont blame the victims… I blame YOU !!!

        (13) 17 Total Votes - 15 up - 2 down
        • Moderator says:

          TacomaRose, everyone:
          Less about each other, much less.
          That is if you want to post comments here.

          (0) 4 Total Votes - 2 up - 2 down
        • mbbizpro says:

          Rose, my attitude is not flippant at all. If you would read my post I clearly indicated that there is no room for misrepresentation. If that happened, and it probably did, the sentence is much too light. Having said that, we are all responsible for protecting our assets. If something is too good to be true, RUN AWAY QUICKLY. If we fail to do so, we have nowhere to point fingers. And no, I don’t know Jarmin, Jordan or anyone associated with them and my post did nothing to deflect their actions. Again, my only point is that we are ultimately responsible for our decisions and need to have the ability to understand the risks involved with the decisions that we make. If Jarmin and Jordan broke the law, they should be punished accordingly as well.

          (-7) 13 Total Votes - 3 up - 10 down
          • TacomaRose says:

            I understand some of your logic but to paint the victims as greedy is quite improper since you dont know if they were greedy or simply fell for the snake oil peddler. I would bet you that many of the victims dont have the financial savy to have fully undersood the many aspects of risk.

            Sure it is easy to paint people with a broad brush but ultimately the real culprit is the snake oil salesman. Do I hear an amen from the choir?

            (6) 8 Total Votes - 7 up - 1 down
            • mbbizpro says:

              Rose, I hope that I did not offend you. I happen to know a little about that industry (private money real estate lending) and my experience is that most people that invest in that area are experienced people that repeatedly invest in those types of transactions. Tons of money were made by investors, the private money lenders and the property owners up to 2008 when the market collapsed. I saw the same cycle happen during the 80s and then everyone experience heavy losses in the early 90s during that downturn. In both go arounds, I watched many that lost money in the downturn become very upset and claim not to know the risk even though they had participated for years prior to the downturn. For those reasons, I am skeptical of the protests of victimization and that is why I posted the names and two of the potential witnesses in this case as both fit my description of the serial investor.

              (-2) 8 Total Votes - 3 up - 5 down
              • lovintheslolife says:

                “Skeptical of the protests of victimization and that is why I posted the names and two of the potential witnesses in this case as both fit my description of the serial investor?” That is a quote from your comment above.
                I suggest you go watch the trial. That way you can find out the true facts and make an informed opinion on this case.

                (0) 0 Total Votes - 0 up - 0 down
  7. BeenThereDoneThat says:

    First degree robbery in CA. can get you 3-9 years.

    Second degree 2,3 or 5 years and in most of these cases they usually steal 2-4k. Now these ASSHOLES steal 30 million and get a misdemeanor conviction?? Oh I forgot because the former crime you instill fear while committing your crime, so you get more time I guess?? Guess they (Gov) doesn’t realize the fear that older people will have of, what do I do now that I have to work till I die? Yes well come to our F.U. system!

    (28) 32 Total Votes - 30 up - 2 down
    • achillesheal says:

      The judge was wrong, no question, but I don’t see your logic.

      If I stick a gun in someone’s face and rob them, the spoils of the crime are irrelevant. It is the crime of robbery that one is convicted for.

      If I shoot a bullet at you and miss, you are not harmed in any way, yet I will and should be charged with attempted murder.
      Society deems violent crimes to be far worse than misrepresentation and fraud.

      (9) 13 Total Votes - 11 up - 2 down
      • BeenThereDoneThat says:

        Yes the spoils of crime are irrelevant. That is my point. These small time hoods get WAY more time than the one’s committing white collar crime. There should be parity.

        (1) 1 Total Votes - 1 up - 0 down

Comments are closed.