Former Real Estate Chief Admits Fraud

Ray Emery Lamb, once the chief of Ventura County’s largest real estate brokerage, pleaded guilty Tuesday to federal fraud charges of hiding assets after his firm had declared bankruptcy.

Lamb, 50, entered the plea before U.S. District Judge Audrey B. Collins, who is scheduled to sentence him Aug. 31 in Los Angeles, Assistant U.S. Atty. Leslie A. Swain said. Lamb faces up to five years in prison and a $25,000 fine, Swain said.

“I’m very pleased when justice is served, and we hope that this sends a message that bankruptcy fraud or any other frauds that fall under federal jurisdiction will be actively investigated,” said Kevin Kelly, acting supervising agent of the FBI’s Ventura County office.

“It ends a long investigation,” Kelly added. “The right thing has been done.”

But Lamb’s plea rattled some who knew him.

“It breaks my heart, it really does,” said Simi Valley Realtor Vicki Gemette, a former employee of Lamb’s. “I’ve known him for years, when he not only talked about high ideals, but meant them. For him to get caught up in this situation is sad, really a shame.

“There are a lot of people in the real estate community that are going to feel bad about this,” she added. “He should know better. He was always the one teaching all of us the difference between right and wrong.”

In December 1991, Lamb filed for Chapter 11 bankruptcy protection on behalf of Lamb Realty’s parent, VCRE Corp., based in Thousand Oaks. But he had a hidden nest egg: he was part owner of La Fiesta Lavanderia, a coin laundry shop in Pacoima.

Lamb emerged from bankruptcy in 1994 and sold the laundry business in 1995, walking away with checks totaling about $143,000, according to an FBI affidavit.

Lamb received an additional $122,500 note from the remainder of the sale proceeds that was to have earned him about $1,530 a month until Sept. 1, 2001, when the remaining portion of the note would be due and payable, the affidavit said.

The documents said Lamb went on to deposit the checks into a Great Western Bank account, from which he then withdrew the money for use in starting a limousine service.

As late as last year, the affidavit said, he had accepted a $71,000 bank transfer from an account in a Hong Kong bank.

“Boy, what a blow,” Gemette said of her former boss. “I just feel so bad.”

Gemette remembered Lamb as the dean of Ventura County’s Realtors, not only the largest independent Realtor but the one, she said, with the most vision and integrity.

“He had quite a concept about Ventura County,” she said. “He really understood that the way to sell in this county was to show people the beauty of this county, that this county was a wonderful place to live.”

Lamb’s troubles began before his 1991 bankruptcy. Lamb and four agents were disciplined for two deals, in 1986 and 1987, in which home values were allegedly inflated so buyers could get larger loans and pocket the excess cash. Lamb and four sales agents were ordered to pay fines totaling $42,500. No criminal charges were filed.

In connection with the FBI’s probe of Lamb beginning in 1986, seven of Lamb’s former employees and ex-officials at his real estate companies have been charged, convicted and sentenced on mortgage fraud charges.

At the peak of its success, Lamb Realty had eight businesses in Los Angeles and Ventura counties. His offices were in Thousand Oaks, Camarillo, Newbury Park, Oxnard, Port Hueneme, Simi Valley, Woodland Hills and Studio City.