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December 2, 2009

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Interstate Mortgage charges modified

Friday, Dec. 19, 2003 | 10:56 a.m.

Charges against the principal players in the collapse of Las Vegas-based Interstate Mortgage Group Inc. -- which was seized by state regulators in 1999 after losing $5.7 million in collateral -- were modified in court proceedings this week.

A 78-count indictment against David Ferradino, head of the now-defunct lender, was reduced to 51 counts of theft by a Las Vegas grand jury. Ferradino is scheduled to be arraigned Jan. 7 in Clark County District Court.

An identical indictment against against homebuilder and Ferradino associate Edward T. Manley was dropped because of lack of evidence, said Deputy Attorney General Matthew Dushoff.

The charges involve a $5.4 million loan for the purchase of land in Henderson -- funded by investors -- that prosecutors say Ferradino mishandled.

In 2002, Ferradino was ordered to pay $4.2 million in restitution to 90 investors and placed on five years probation after pleading guilty to theft. State regulators claimed that at one point Interstate had about $46 million in outstanding loans funded by 1,000 investors.

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