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State seeks to revoke Quick Loan Funding founder’s license
November 9th, 2007, 12:37 pm · 50 Comments · posted by John Gittelsohn
(Updated at 6:30 p.m.)
State regulators want to revoke the finance licenses of Daniel Sadek, owner of Costa Mesa-subprime lender Quick Loan Funding Inc., saying he charged excessive fees to borrowers and took out $1 million in markers from his escrow company to cover gambling debts in Las Vegas.
The Department of Corporations filed the amended accusation to revoke Sadek’s lending licenses for Quick Loan, Sadek Inc. and Loyalty Funding Inc. on Wednesday. It follows an Oct. 10 accusation seeking to revoke the license of Sadek’s Platinum Coast Escrow Inc. All four companies operate in the same building at 535 Anton Blvd. in Costa Mesa.
Reached by phone Friday, Sadek said, “Why don’t you get a (expletive) life and don’t call me again?” He then hung up.
The subject of a May 20 Orange County Register story “High roller of home loans,” Sadek previously denied that he intentionally used escrow funds for gambling, allegations of which were originally contained in a lawsuit by a former employee. He also insisted that corporate funds were his money to play with.
“There’s only one owner of the company,” Sadek said in a May 2 interview. “It’s me. So, I’m not gambling your money. I’m not gambling the public money.”
The Department of Corporations said Sadek took out gambling markers for $500,000 at the Wynn Las Vegas on April 25, for $20,000 at the Bellagio on April 27 and for $500,000 at the Wynn on May 17. A marker is a line of credit extended by casinos after a client provides personal and bank account information.
The department’s accusation said Sadek should be stripped of his California Finance Lending license because of acts “involving dishonesty, fraud, or deceit, by pledging trust account funds to obtain gambling markers … that resulted in the unauthorized disbursement of trust account funds.”
The Department of Corporation also accused Quick Loan Funding of charging borrowers $19,564 in excessive fees for loans recorded between Jan. 1, 2004, and June 30, 2006. An August audit by the department found that Quick Loan charged fees for title insurance when no policies were in borrowers’ files, according to the accusation.
Mark Leyes, a spokesman for the Department of Corporations, declined to comment on whether Sadek could face criminal charges. However, Leyes said the department has stepped up enforcement thanks to a growing staff and more complaints about the mortgage industry.
“Overall mortgage activity has gone nuts and as the level of activity has gone up, the opportunity for malfeasance has gone up,” Leyes said.
In the first 10 months of this year, the department filed 180 administrative actions against lenders, mostly in the mortgage industry, Leyes said. That compares to 105 actions for all of 2006. The department referred or assisted prosecution of 55 criminal cases so far this year, compared to 39 cases in all of 2006.
At its peak in 2005, Quick Loan Funding employed more than 700 people and originated $200 million of subprime loans a month. Sadek lived the high life, buying a Newport Coast mansion, a Las Vegas condo and a fleet of two dozen Ferraris, Maybachs and other exotic cars.
He said he spent $33 million of his own money to shoot and market “Redline,” a thriller about high-stakes gamblers betting on a car race that starred his former girlfriend, Nadia Bjorlin. One scene in “Redline” showed the crash and destruction of Sadek’s $575,000 Porche Carrera GT. At a promotional event for the movie, Bjorlin’s co-star Eddie Griffin crashed Sadek’s $1.4 million Ferrari Enzo.
Like other subprime lenders, Quick Loan fell on hard times this year as Wall Street banks cut off its lines of credit. On Oct. 26, the Department of Corporations barred Platinum Escrow’s accountant, Miguel Angel Vazquez, from working in the escrow business because he “recklessly disbursed” $25,247 in company funds in 2006 and 2007. Vazquez did not contest the allegations against him.
Click here to see the charges.
Click here to see the stories about Sadek.
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Now this story just made my day. I remember reading the article about this guy back in May. I found him distasteful then too.
The housing collapse is a huge story, but these smaller stories within the story are what keep it interesting.
That is one ugly dude.
I worked for Quick Loan Funding for 2 weeks, that is all it took to find out Daniel Sadek was a thief and a loser. He not only would take your deals if you could not close them at the Outrageous fees they were charging but his sales meeting he used to conduct ranting and raving at everyone didn’t know what they were doing and he was the king in his Jeans and t-shirts… Why would he were jeans and t-shirts with long hair and he would make his employees wear slakes and ties?? I can’t wait until this guy is behind bars!!!!
“Excessive fees”, is an understatement!
All loan brokers and escrew officers should be arrested! I remember when I was doing my escrow, and I counted at least 10 ‘junk’ fees that were just pure profit for the crooks that run the real-estate industry. I managed to argue all ten of them to ‘0′ after the escrew officer was about to kill me! (Can you say fraud!)
The whole real-estate industry needs some checks and balances now, and it’s about time the feds are finally taking notice of how corrupt this industry really is!
BTW… looks like it WAS a nice car, I wonder what light pole ran in front of him?
“Ha Ha!” -Nelson Muntz
Actually I think the car was wrecked in the filming of a movie. Do your research.
Bobbyc-
You are exactly the kind of guy who gets jerked because you are to busy counting pennies as the dollars fly by. There are inherent title and escrow costs in every loan. That is not some “rip-off”. Generally, if someone tells you that, he/she is playing it straight. It’s the hidden costs that one should be wary of. Keep falling for the advertising “No closing cost loans”- you have it all figured out. That being said, lot of jokers in the business and I don’t know this one up top.
It’s great that his license has been revoked…too bad it really doesn’t matter since he closed his boiler room operations a few months ago.
please bobbyc explain to me why “All” loan brokers and escrow officers should be arrested. If you rightfully checked all the fees before signing when you went over your settlement statement you wouldn’t be that upset. First off it is the large mtg broker firms that charge outlandish fees to cover their overhead. Second, if you think going to a bank is a smarter move (ehhh) wrong again. Not the best move because the bank is not going to give you the best rate or terms and I will put my left arm on it. Best answer is go to a small mortgage company that doesn’t have to charge the ridiculous fees and you choose your own title company. The only fee a mtg company will charge is usually a origination/broker fee, processing, and maybe a credit report. Unfortunately it sounds you went to the wrong company and that is one of the many reasons why our housing industry is in this situation. But please take in consideration you have a long list of people to blame besides loan brokers and escrow companies. If you want a list with what each position was responsible for let me know and I can give to you. But this a**hole in this article deserves to be put behind bars.
Vile - and should be run out of O.C. back to L.A. where he’ll be more comfortable with the other pigs
actually that car was wrecked at a press event for a movie that he financed. do your research.
Bobby c is an idiot
Oh, com on, stop pickin’ on ‘lil Mr. Testostorin… He’l eventually get what he wanted all all along… rhymes wiith plucked…
This gyu sounds like a typical dooooshbag!
To Bobby C and any other advocate for Daniel Sadek;
Loan officers have minimal work credibility. Where else can you work? What job skills do you have other than punching a few numbers into a computer program? Pretend your resume is infront of a HR director of a reputable company, what do you think they are thinking when they see your work history and industry you were in? I bet you really believe the market will change and you can purchase another home or luxury car in a few years? Look at BofA’s earnings this week, Merrill Lynch’s last week, Citi Bank this week, etc…..Need I go on. You loan crooks have no idea on how to build a market through products or services. Maybe grad school and a few books on economics may give you some clarity on where this world economy is heading.
good luck bottom feeders
Daniel, Wesloh Chevy has your position saved from back in 99′
Just for all of you out there that have no other things to do in you life but take cheap shots at other people, the fact stays that Mr Sadek employed lots of people and because of him you low life people got subprime loans who u accually couldn’t afford yesterdays newspaper, so now here is the real story,
Mr Sadeks car was infact crashed in a charity event, and how many of you donated any money to anyone? And I know for a fact that he donated over 3 million dollars to aids foundation , cancer society , etc….
and about his lic being revoked? Here is the real story, QLF surrender all their licenses 2 month ago right after the shut their doors down, so there’s no more licenses to be revoked.
about using the escrow money to pay markers is also not true , the fact is that the wynn casino was trying to collect the money by going into his bank account at wells Fargo, they found out that Mr Sadek’s account had no funds and at that time Wells Fargo gave then the trust account number (escrow account) so the wynn deposited the marker to collect the funds but it was rejected by Mr Sadek, so the money Never made it out of the trust account at all, so this reporter is an idiot for not getting his facts correct, and wells Fargo will have his share of a big lawsuit in the near future just because they have commited more fraud against. QLF by cashing checks that had fraudulent signitures and they are not willing to refund the money at all.
finally I would like to share this secret with all of u, like it or not Mr Sadek will be back up and bigger than he ever was.
Sadek is a punk. he hides behind his possy has no respect for anyone. he is reckless with his money and im glad to see some justice. He deserves everything that is coming to him.
The state cant wait and they gone get you… quick loan funding…. biatch!!!!!!!!!!!!!!!!!
Burn him down and take all the brokers with him! Dear smarterthanusual you are either a crook broker or know nothing about the mortgage business. My guess is you are a scumbag broker. THEY ARE ALL CROOKS! If anyone thinks anything different they are naive.
this guy belongs behind bars. He is nothing but a scammer.
If Daniel Sadek was running for Congress I would vote for him!
I had friends who worked there…they said he was a nice guy, but confirms that he was really strict and yelled a lot. I went to go work there and read the employment agreement and saw how shady it was and said no thanks. It was companies like this that overpriced loans that are causing the grief for those of us who are not thieves.
they made a ton of money on each loan, and he made millions a month.
BTW, Ferrari, after seeing what happened to the car, fixed it for free, because they were embarassed that their race car got totaled in a 40 mile per hour crash. Its nice to know that they, ferrari, stand behind their product
It is very disturbing to see one man like this ruining the industry for so many others. if you are looking for an honest and fair place to get a home loan Bobby c….go to http://www.cov411.com and check them out. They also have a radio show called Mortgage Matters on KLSX 97.1FM on Sundays from 10A-12P. There a lot of good guys out there who truly enjoy helping people own a home and get a home loan that is right for them and thier family.
Just for all of you out there that have no other thing to do in you miserable life but to take cheap shot at others, the fact remain That Daniel Sadek helped lots of people, and because of him most of you losers got subprime loans who u actually couldn’t afford to buy yesterday’s news paper, so now here is the real story,
Daniels car was crashed in a charity event, and how many of you donated any money to anyone? And I know for a fact that he donated over 3 million dollars to aids foundations, cancer society , etc…..
but that was never mentioned at all,
About his license being revoked???? Oh yeah here is another fact, that Daniel Sadek surrendered all QLF licenses 2 month ago when he closed his doors, so their is no more licenses to be revoked,
in regard to the use of the escrow account to pay marker is also not true, the fact is that the wynn casino was trying to collect the money by going to Daniels personal account at wells Fargo and when they found out that he has no funds they obtained the trust account number from wells Fargo’s employee which by the way is illegal just because that account is a trust account for platinum escrow and the money does not belong to QLF or Daniel. so when the Wynn deposit the marker Daniel rejected the check and never was cashed, so the money was never taken out of the escrow account, SO this idiot reporter has his facts wrong, and wells Fargo will have his share of a big lawsuit against them, because this one of the stupid and illegal thing that they committed against QLF that includes cashing checks that has fraudulent signatures and opening accounts for people who wasn’t employed by QLF and costing QLF 2 million dollars and up until now wells Fargo refuses to admit the mistake and will not return the money,
one last thing, i like to share with you and this idiot reporter that time will come and Daniel Sadek will be bigger than he ever was b4 , like it or not.
G………..
Smarter: Brokers make the money on the sheet, charging higher rates. The customer usually can’t tell. The best deals are at banks, so keep your credit strong and get preferred rates
Sadek: You will end up in jail. You should just sell that strip joint you own, otherwise the feds will take it.
Readers: Learn how to use options and short selling and take advantage of the reality of the implosion
Party’s OVER Dude!
oh my gosh, this story made my entire weekends hahaha, who is laughing now.
I wonder if this is the same jerk that always used to park his Maserati horizontally across parking spaces and on red curbs and had personalized plates that read ‘VIP QLF’ at the Anton buildings. If so, this guy thought rules didn’t apply to him.
It amazes me that we are into to the blame game regrding this mortgage loan fiasco. Nobody seems to recognize that wall street greed is what has pushed this story. Golden S. Bear S. mother Merryl plus a bunch of nieve but greedy European entitities are most responsible.
You see Sadek and any other small time entities like his were only puppets in the grand scheme. They only delivered the goods as ordered by wall street.. They didn’t make the rules. Wall street did.
I bet you when they look into this further they might find it a stretch that he did anything wrong. He owned his company as a 100% shareholder. All equity was his to gamble with it any way he saw fit.
I am sure if you search hard you will find compliance issues with any entity out there.
This does not make him a thief.
George
u had time to update your story and still dont have time to post my comment???
I also worked for this firm for 2 weeks before telling my wife that I would rather be unemployed and starving before supporting a scum bag like Sadek. He took what he learned from selling cars and turned it into mortgages…I honestly showered for a week before I felt clean after leaving.
Oh and “D” the car to which you are refering was wrecked during a promo for the movie…Do YOUR research.
Sadek.. sounds like a sad case of greed if you ask me. What a loser. what wannbe high roller gambles a million dollars in Vegas? Its not that hard to find a pretty girl.
bobby, u cant find your @ss with both of your hands
McDonalds is hiring bobbi boi
Funny how the state did not object while companies like these were helping the price of real estate go through the roof resulting in huge property tax windfalls. Now they are staffing up to pick at the carcus and cover their behinds.
NO BAIL OUT.
I thank God that I did not end up taking the job offer for one of Santan’s agent!!!
God definately was proctecting me from this evil one!!
Correction of spelling on SATAN agent on my last comment and yes he is one them and should be taken down!!
Bobbyc:
If you know so much, and if the “junk fees” are so important to you, why were you doing business with a broker NOT licensed by the DRE? NEVER, that’s NEVER do business with a CFL broker. (Dept. of Corporations “Consumer Finance Lender” lender’s license). Most of them, if not thieves, do NOT know what they are doing. The reason they work under a CFL lincense is because they cannot GET a DRE license, or are trying to hide something in their past, or are too lazy to jump the hoops to get one!
I’ve always wondered: Why does the CFL license exist in the first place? I guarantee you, if the research were done, it would reveal that most abuse occurs at the hands of CFL brokers. A CFL broker only has to DECLARE that he has a $50,000 net worth, supply address and phone and VOILA! They are brokers!! Then, they hire fools off the street who don’t know what LTV means, and start selling loans. The sad part is that these people are often well-meaning, but know nothing!! What do you think is going to happen?
What happened to you is something you deserved for being such a fool doing business with CFL brokers to begin with. Stop showing your ignorance, and get an education about the mortgage process and start making intelligent decisions instead of emotional ones.
Tough time don’t last, tough people will last behind bar hahhaha Poor thing!
After reading this article I felt compelled to respond to all of the obvious cheap shots this writer continues to take against Daniel Sadek. It appears that Mr. Gittelsohn has a personal vendetta against Mr.. Sadek. He continues to use the OC Register to publish his highly inflammatory and slanderous drivel.
The facts are these:
-As the owner of Quick Loan Funding, Daniel Sadek HELPED hundreds of people to qualify for subprime loans that they NEVER had been able to get before. He made these people’s dreams of buying a home come true. When Mr. Sadek closed the doors of QLF two months ago, he SURRENDERED ALL QLF licenses. So I ask Mr.. Gittelsohn, exactly what is he talking about when he says Mr. Sadeks license is going to be revoked? It was already TURNED IN by Mr. Sadek. It no longer exists.
-In regards to the use of the escrow account to pay markers at the Wynn Casino in Las Vegas? Please. There is absolute proof that Mr. Sadek never used money from the escrow account nor used the escrow account to qualify for a marker at the casino. The truth is, if this reporter had done five minutes of research about this he could have found this out. But that would be assuming that this reporter wrote documented facts not idiotic fairy tales.
-The car crash that Mr. Gittelsohn refers to was an Enzo Ferrari owned by Mr. Sadek that actor Eddie Griffen drove at a charity event. Did Mr. Gittelsohn mention at any time the millions of dollars that Mr. Sadek has given to AIDS, cancer research or aid to Haitian people? Or how Mr. Sadek is a fair and honest boss to his employees? No, that might not put the ’spin’ he is trying so hard to create in the right light.
You have to wonder why Mr. Gittelsohn has spent so much time trying to discredit all of Mr. Sadeks accomplishments and good deeds. Why he would blatantly lie and fabricate these stories? And why would the Orange County Register PRINT this crap? Surely, the Orange County Register is more reputable than this, aren’t they? Or have we lost them to vicious, irresponsible journalism? It appears we have. Why else would they run baseless articles by an ignorant and seemingly very angry Mr. Gittelsohn? Hmmm….I think I see a retraction in the future. And for the reporter of these stories? What’s wrong, Mr. Gittelsohn? Were you picked on when you were a little boy by someone who looks like Mr. Sadek? Because when it boils right down to it all you have done after the facts have actually been stated is come off looking JEALOUS. Good luck with that.
G….
You are all getting way to into what brokers, escrow, title, etc. does or doesn’t do. The point of the story is that Sadek is a crook. Always was, always will be. I hope he fry’s.
Anon
LOL, What should be done is have his passport/visa taken away and send him back to him country of origin, which is not in USA: cause we are the bad guy and he is saying we “are picking on him” when he rapped and pillaged the un-educated homeowners.
GO TO THE WEBSITE LEFT BY JASON; THIS IS EXTREMLY IMPORTANT TO ALL OF US ITHA GOOD NAME.
We need to weed out the bad and cultivate the good….weed out this crab grass.
I think that after knowing Daniel for 15 years and working for him as a VP and HAVING a Spotless record with the DRE for over 30 years, I know better that ANY of these posters, ESPECIALLY the ones wo are afraid to post their real names that Daniel is a great businessman and that these people are all jealous. Please do not talk bad about him unless you know him. NO ONE put a gun to the head of any of the borrowers he helped get out of debt with credit cards and car payments they could not handle, along with getting them $1000’s of dollars in cash.It is not Daniels fault the real estate market collapsed. Lets be fair.
Lou Pacific
Real Estate and Mortgage Company Consultant
Serving OC for 30 Years
Lou Pacific, you sound like you got away with murder in OC for 30 years. Is there a way we can ever repay you?
G…..
Get your facts straight…. the money did come out of the escrow account and no Sadek did not “reject” the payment. It was other management who caught it. And this is all i am going to say
Eric
Thanks for share your experience, by the way ,great tips huh..
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