An Update on the Beverly Hills Real Estate Scam

 A couple of recent articles, one in the L.A. Times and another in Forbes, detail the case against Beverly Hills real estate agents Kyle Grasso and Joseph Babajian. 

Authorities allege that the pair, who both worked at Prudential California Realty, participated in a Beverly Hills-based scam that involved buying homes at market value, creating inflated appraisals for the homes, borrowing money based on the bogus appraisals and pocketing the difference.

Grasso and Babajian have pleaded not guilty to fraud charges and are awaiting trial.  Five others named in the case have pleaded guilty and have yet to be sentenced.

It’s not like these guys needed the money.  Grasso and Babajian were the listing agents on the $22 million mansion that David and Victoria Beckham bought in 2007. Babajian claimed on his Web site that he sold $182 million in real estate in 2006.  When Prudential California suspended the pair in August, they had $65 million in listings.

So if they did it, why?  There’s no way of knowing until the facts come out.   But if they were involved: Good luck finding a sympathetic jury!