Brothers Plead No Contest in Home Scam

Two brothers accused of defrauding Los Angeles homeowners in scams that caused some residents to lose their homes pleaded no contest Tuesday to grand theft, officials said.

Timothy Barnett, 34--a smooth-talking, Bible-quoting loan broker and investment advisor--pleaded no contest to 14 felony counts of grand theft, authorities said. Darryl Barnett, 36, pleaded no contest to one count of grand theft.

The brothers are scheduled to be sentenced Sept. 30 in Los Angeles Superior Court. Timothy Barnett faces up to nine years in prison, while Darryl Barnett faces up to one year in jail and three years’ probation, prosecutors said.

Deputy Dist. Atty. Victor M. Minjares said victims lost from $5,000 to $100,000. Some inner-city residents could not afford to keep their homes, he said.

“All the counts of grand theft include fraud,” Minjares said. “He [Timothy Barnett] did whatever it took to get the money.”

Timothy Barnett once promoted his business as “one of Southern California’s largest Christian-owned and -operated mortgage companies.” He formed American First Funding, Funding 21 Mortgage Corp. and other firms.

Barnett and his representatives said that they would help find loans for home repairs or mortgage payments. Complaints came from customers who said they were fooled into deeding their property to him or misled into believing that he was investing their money, only to find out later that it had vanished.

Lawyers for some of the victims indicated that Barnett cheated at least 40 people.

Barnett has said that he never intended to cheat anyone. Problems arose from a depressed real estate market, he said.