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Glenn Jasen, Spring Hill, Florida and Kathryn Jasen, Spring Hill, Florida, were found guilty of wire fraud by a federal jury.  They each face a maximum penalty of 20 years in federal prison. The sentencing hearings are scheduled for January 11, 2016. They were indicted on July 15, 2015

According to testimony and evidence presented at trial, in 2009, the Jasens discovered a sinkhole beneath their home in Hernando County, Florida, and made a claim to Citizens Property Insurance. Citizens offered the Jasens either a check to compensate for their losses or mitigation of the sinkhole. Rather than having Citizens repair the developing sinkhole, the Jasens instead chose to receive a check for $153,745.37. But they kept the money and did not repair the sinkhole. The Jasens then made cosmetic repairs to the house and listed it for sale in 2013, but kept the sinkhole a secret from prospective buyers. In fact, on a required Florida real estate disclosure form, the Jasens denied any knowledge of a prior sinkhole or sinkhole claim. The home was ultimately sold to a family with five children. In March 2015, the family heard what sounded like a car crash in the earth beneath their house. They soon discovered a crack running across the floor of the house, and immediately had to evacuate.

This case was investigated by the Florida Department of Law Enforcement Tampa Bay Regional Operations Center. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.


Michael J. Stewart, 68, San Clemente, California, the CEO of a now-defunct Southern California real estate investment firm, was found guilty of 11 counts of mail fraud following a nine-day jury trial before United States District Judge Cormac J. Carney.  The charges arose out of a real estate scheme that ended with the bankruptcy of the company and hundreds of investors collectively losing as much as $169 million.

Stewart owned and was the chief executive of Pacific Property Assets (PPA), which had offices in Long Beach and Irvine, California. Along with co-defendant John Packard, Stewart created PPA in 1999 to purchase, renovate, operate, and resell or refinance apartment complexes in Southern California and Arizona. Typically, PPA financed property acquisitions through mortgages, and it raised money from private investors to pay for renovations to the properties. After several years, PPA would refinance (or sometimes sell) each property. Continue Reading…