Feds indict farmer, daughter
Spaich and daughter accused of wire and mail fraud
A once-prominent Live Oak prune farmer and his daughter were indicted Thursday on conspiracy and fraud charges after she was allegedly used as a "straw buyer" to purchase property and allow her father, who had declared bankruptcy, to refinance the property and draw equity from it.
The 13-count indictment in U.S. District Court in Sacramento contends Gavrilo Spaich made a $165,000 gift to his daughter, Jeanne Spaich, of Marina Del Rey so she could buy the Mission Viejo property in Orange County.
The indictment charges Spaich and his daughter with conspiracy, wire fraud, mail fraud and other counts.
Gavrilo Spaich for many years was one of the principals of Spaich Brothers Inc., a prune grower in Live Oak. The company filed for bankruptcy protection in 2001. Three years later, Spaich filed for bankruptcy protection.
The indictment centers on financial transactions in 2005 involving the Mission Viejo home Spaich bought in April 1996. Title was transferred a few months later to the Spaich Brothers, according to the indictment.
The indictment alleged that Jeanne Spaich became a straw buyer for the home so her father could "remove equity ... route the money to himself and to other individuals for his benefit, and still maintain his control of the property undetected."
The indictment also charged that Spaich concealed assets in 2004 during his bankruptcy case. He could not be reached for comment.
Contact Appeal-Democrat reporter Ryan McCarthy at 749-4707 or rmccarthy@appeal-democrat.com.
