Ventura County Realty Broker Probed in Possible Bank Fraud

The FBI is investigating Ventura County’s largest independent real estate broker for possible bank fraud, The Times has learned.

Lamb Realty and an escrow company also owned by Ray E. Lamb allegedly overstated to lenders the values of homes for sale, so the excess amount could be used as down payments by buyers who otherwise would not qualify for the loans, real estate sources said.

Because of its size--eight offices in Ventura and Los Angeles counties--Lamb’s firm frequently represented both seller and buyer, meaning that his company would get all commissions if it could assist the buyer. His escrow business, which handled the paperwork with the mortgage companies, also profited from each sale it handled, sources said.

Such a practice would not mean a loss to lenders, as long as the mortgages were paid on time. But under federal law, it exposes the lending institutions to undue risk, especially in deflated real estate markets where borrowers default on their loans, sources said.

Gary Auer, head of the FBI’s Ventura office, would neither confirm nor deny that there is an investigation, as is the agency’s customary practice.

Lamb confirmed Thursday that the FBI seized company records about a year ago. But he denied knowing of any investigation. He contended that the seizure was related to disciplinary action taken against him and four of his agents in 1990 by the state Department of Real Estate.

“There was nothing beyond that initial contact,” Lamb said. He denied any wrongdoing.

Lamb Realty filed for Chapter 11 bankruptcy protection from creditors last month.