The Sacramento Bee
Convicted embezzler Kenneth K. Wang has been ordered to pay $125,000 plus legal fees for defrauding an elderly Sacramento couple in an intricate real estate venture.
Sacramento Judge John V. Stroud ordered the judgment Oct. 28 in a Superior Court case that started when Wang sued Allen and Anna Benson for a commission.
The Bensons’ lawyer, Jeffrey H. Ochrach, said in court documents that Wang is "notorious for preying on the vulnerable and trusting people" such as the Bensons.
The Bensons are in their 70s, according to court documents, and Anna Benson has been restricted to a wheelchair because of an accident that left her a paraplegic. Allen Benson was on medication for blood pressure and heart problems when the transactions were conducted in 1990 and 1991, Ochrach said.
Here is the short version of an incredibly complex series of transactions, according to court documents and Ochrach:
The Bensons lived for more than 30 years on 10 acres on Stevenson Road in Sacramento. But they wanted to move to a less expensive home and use the profit to physical therapy and special equipment for Anna. In April 1990, they reached an agreement to sell the family home.
About a month later, they agreed to buy a parcel on Bradshaw Road. Wang served as broker for both Bensons and the seller – and he also had a secret ownership agreement in the property.
Shortly thereafter, the Stevenson sale fell apart and Wang’s own firm agreed to buy the 10 acres.
But Wang’s firm eventually backed out of the Stevenson deal and the Bensons were stuck. They still owned the 10 acres and would lose a $10,000 deposit – all of their savings – if they didn’t proceed with the Bradshaw purchase.
So Wang arranged for the couple to get loans form a subsidiary of his own firm, though he didn’t reveal that he was getting referral fees for the loans. One of the loans involved a 7-point loan origination fee - when the going rate was 1.5 points - and another carried an interest rate of almost 22 percent.
After much wrangling, the Bensons finally sold their 10 acres to a real buyer. They are living on Bradshaw.
Wang was paid a broker’s commission of $7,900 for the Bradshaw sale, but later sued the Bensons for a $30,000 commission on the Stevenson deal.
The Bensons sued back. In the middle of a jury trial on both suits, Wang admitted that he was guilty of intentional fraud and agreed to the judgment.