Porn Actress’ Accounts Frozen in Alleged Mortgage Fraud Probe
Federal officials have frozen the bank accounts of a porn actress who was being wooed by a Carlsbad, Calif., businessman accused of orchestrating a multimillion-dollar mortgage fraud.
Securities and Exchange Commission officials say they do not believe actress Kelly Cook, also known as Kelly Jaye, violated securities laws. But regulators are seeking to freeze the assets in order to recover any money improperly taken from investors.
The SEC alleges that Cook’s one-time boyfriend, Michael J. Fanghella, bilked investors in mortgage lender PinnFund USA by fooling them with bogus financial reports.
SEC officials say at least $107 million of the money raised in the alleged scheme was transferred to Fanghella to fund a “lavish lifestyle” and his relationship with Cook.
Regulators said he spent about $10 million on Cook, including a $5-million house in Laguna Niguel and gifts including $2 million in cash.
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