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Why did robbers select the Newport Beach home of former subprime lender Daniel Sadek? And was there any connection with a Mercedes catching fire on his property two weeks earlier? Police arrested three men on suspicion of breaking into the mansion and three people at Sedak's home suffered head injuries. A little background on Sedak from the OC Register (screenwriters take note):
Sadek made and lost a fortune in the subprime mortgage business. Quick Loan Funding, which he founded in 2002, wrote about $4 billion in subprime mortgages before it collapsed in 2007. He declared bankruptcy in Nevada two months ago. With his earnings from Quick Loan, Sadek lived a high-roller lifestyle. He bought the Newport Coast mansion, a fleet of exotic cars and crashed some of them in a movie he financed called "Redline." He bought a condo in Las Vegas where he became a high roller at the blackjack tables. Court records list cash advances taken out on his credit card at casinos from Hawaiian Gardens to Lebanon. In court filings, he acknowledges gambling in the multi-million dollar range.
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In September, Vanity Fair ranked Sadek No. 86 on a list of institutions and people most to blame for the nation's economic problems. The magazine called him "Predator Zero in the subprime-mortgage game," and quoted a competitor saying he "would have written a loan to 'an insolvent arsonist.'" In May 2007, the Register reported that Sadek's company, Quick Loan, had been accused of predatory lending, deceptive underwriting and fraud in at least eight lawsuits. In addition, Department of Corporations records showed 33 complaints against Quick Loan, most alleging unfair business practices. Most of the lawsuits were settled out of court.
Police don't know if the three men being charged wanted to rob Sedak or collect on a debt. Two of the three arrested do not appear to have a criminal record.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.