The operators of a hard-money-lending business based in Paso Robles have been charged with defrauding clients of at least $2 million.
Rodney Virgil Jarmin, 72, and Tammy Marian Jordan, 49, who owned the company Real Property Lenders, face seven felony counts involving misrepresentations in the sales of securities, said prosecutor Steven Von Dohlen.
Jarmin pleaded not guilty to the allegations on April 7 and remains in County Jail in lieu of $5 million bail.
Jordan is awaiting an extradition hearing after being arrested in Bozeman, Mont., Von Dohlen said.
Real Property Lenders acted like a middleman between investors who were promised annual 12 percent interest payments on money they put up as loans for developers in real estate projects.
Von Dohlen said that the misrepresentations included failure to notify new investors that they’d stopped paying interest on investors’ loans and failure to notify prospective investors that borrowers had defaulted on loans.
Von Dohlen said that investigators still are looking into how much money investors lost, and that amount could exceed $2 million.
If convicted, Jarmin and Jordan face a maximum of 17 years in prison.