Gilbert man’s fraud scheme netted $6M, AG says - SanTan Sun News SanTan Sun News

Gilbert man’s fraud scheme netted $6M, AG says

September 14th, 2018 SanTan Sun News
Gilbert man’s fraud scheme netted $6M, AG says

By Cecilla Chan, Staff

A Gilbert man was due for an initial pretrial conference Oct. 9 in connection with charges he faces in a fraudulent loan scheme that allegedly bilked victims over $6 million, officials said.

A state grand jury indicted Jon Richard Rattray, 47, and his Chandler-based company Hawkeye Real Estate Services, LLC of 21 felony counts of fraud schemes and artifices, money laundering, controlling an illegal enterprise, computer tampering, aggravated identity theft and forgery, according to Arizona Attorney General Mark Brnovich’s office.

Rattray was in Durango Jail on a $500,000 cash-only bail last week, according to Maricopa County Sheriff’s Office.

State prosecutors alleged Rattray, through his company, filed a series of forged documents at the Maricopa County Recorder’s Office stating he paid off the loans on homes he owned so he could take out new loans on those properties or sell them to buyers as an unencumbered property.

Spokeswoman Katie Conner with the state attorney general’s office, would not disclose how many victims or properties are involved because the case was still ongoing.

From 2014 to 2018, Rattray pursued a scheme to knowingly defraud his victims with false pretenses, representations, promises or material omissions, according to the grand jury’s Aug. 20 indictment.

The indictment also alleged Rattray planned, managed, supervised or was in the business of money laundering.

It also said he knowingly took, manufactured, recorded, possessed or used personal identifying information or entity-identifying information of three or more people or entities without their consent to cause loss to them.

County property records showed Rattray owned residences throughout the Valley, including in Glendale, Chandler and Mesa.

There are other legal actions Rattray is facing.

CTP Funding filed a civil suit in Maricopa County Superior Court against Rattray and his company, winning a default judgment on Aug. 8 for monies, including a $3.2 million loan and $68,000 in attorney fees, according to court documents.

The suit also named Rattray’s wife, Jennifer L. Rattray, who filed for divorce in March 2017. A hearing on the divorce was set for Sept. 24.

And, Sierra Resource LLC filed a notice of a pending lawsuit or lis pendens with the county recorder, laying claim on 19 properties in Phoenix, Mesa, Gilbert and Laveen.

The company wants the U.S. District Court to find that its deeds of trust on the properties supersede the claims of other parties. The notice includes the Rattrays, Hawkeye Real Estate Services and more than 50 defendants.

The county recorder’s office referred the case for investigation to the state attorney general’s office.