Former pro surfer Conan Hayes, the RVCA co-founder who sold the clothing brand to Billabong for more than $7.5 million, is scheduled to be arraigned in Santa Ana this morning for allegedly committing short-sale fraud of his home, resulting in a loss of over $500,000 to Bank of America.
"Short sales are a hardship based program offered by mortgage lenders to assist distressed homeowners who have suffered a financial hardship," explains the Orange County District Attorney's office (OCDA). "If a property is sold pursuant to a short sale, the buyer avoids foreclosure and the lender agrees to settle the homeowner's debt for the amount of the sale."
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Hayes is accused of applying for a short sale from BofA in October 2010, falsely claiming that he lost his position at work and was currently unemployed. The Topanga resident failed to inform his lender that he had sold his business for more than $7.5 million just three months before, alleges the OCDA, which notes the short sale was approved in March 2011, causing $586,245 in property loss to the bank.
Currently out of custody in lieu of $586,245 bail, Hayes is scheduled to be arraigned today for alleged grand theft with a sentencing enhancement allegation for property loss over $200,000. A conviction could send the 40-year-old to jail for five years, the OCDA says.