Fraud alleged in LV mobile home loans

Brian Seals

Wednesday, Oct. 28, 1998 | 12:17 p.m.

Sahara Mobile Home Sales has accused three of its former salesmen and a competitor of conspiring to generate fraudulent loans.

Timothy Wirth, Charles Schmidt and David Barr were sued in Clark County District Court by Extravaganza Inc., owner of Sahara Mobile Homes Sales. Schmidt and Barr were vice presidents with Extravaganza until June, the suit said.

The suit says they generated loans using fictitious names or using real names without the person's knowledge.

Roger Croteau, attorney for the defendants, said he plans to file a counterclaim against Extravaganza for trade defamation.

"We vehemently deny any wrongdoing," Croteau said.

Extravaganza claims that while the three were licensed with Sahara Mobile Homes Sales they were simultaneously working for Tim Woods, also named as a defendant in the suit, and his mobile homes businesses -- AA Manufactured Homes, AA Homes and Advantage Homes -- without Sahara Mobile Homes Sales' knowledge.

Extravaganza attorney Kirk Williams said there is not yet an estimate of the amount of money involved.

The complaint said a minimal amount of information was obtained for use on a credit report obtained by Woods or his companies to get the loan process started.

"Extravaganza is informed and believes that the defendants conspired together to create false and fraudulent loans using the name Sahara Mobile Homes Sales, the d/b/a of Extravaganza, who would ultimately be liable for the false and fraudulent loans and the defendants would receive the proceeds of the loans," the suit states.

The men would obtain loans using loan documents supplied by one of Woods' companies, even though the agents were licensed with the state under Sahara Mobile Homes Sales, the suit states. The information was sent to Mid Valley Bank of Red Bluff, Calif., also named as a defendant in the suit, which processed the loans.

"Despite the obvious inconsistencies in the documents that were submitted, Mid Valley funded the loans prepared by the defendants," the suit states.

The men would get the proceeds of the loan paid directly to checking account controlled by Wirth, the complaint states.

Phone calls to Mid Valley Bank were not returned.

"Due to the defendant's conspiracy, Extravaganza's good reputation has been damaged with its lenders and clients making it very difficult to obtain real loans for their clients and to stay in business," the suit reads.

Renee Diamond, administrator with the state manufactured housing division, said the state was in the early stages of investigating the matter.