Gregory Craig Sandoval, 25, and Souha Nabil Traboulsi, 40, both of Los Angeles, were charged with conspiracy to commit mortgage fraud against San Bernardino County residents. The on-going investigation into the actions of Eric Pony and his companies, Lifetime Financial, Nations Mortgage, and Green Leaf Lending, led to the discovery of evidence linking Sandoval and Traboulsi to the scheme.

On July 8, 2008, District Attorney's Investigators from the San Bernardino County Real Estate Fraud Unit served a search warrant on Traboulsi's Valley Village business, "Modern Accounting and Services."

Arrest warrants were issued in conjunction with the investigation, and investigators attempted to arrest Traboulsi at her business and residence of record. She ultimately surrendered herself to the West Valley Detention Center on July 9, 2008.

Sandoval, a longtime former employee of Eric Pony at Lifetime Financial, surrendered himself to bailiffs at the San Bernardino County Courthouse on July 14, 2008. Both are currently in custody at the West Valley Detention Center pending their next court dates. Bail for Sandoval was set at $1,000,000 and $500,000 for Traboulsi.