New Haven Financial Inc., Calabasas Larry Rabinoff, Lawrence Rabinoff, Scot R. Fine, Stephen Sutton Update to California Dept of Real Estate charges: Guilty on all counts Calabasas, California

NEWS FLASH!  June 17, 2009

New Haven Financial  (DRE license # 01183819) and Larry Rabinoff (DRE license # 00685632) concede to breaking the law with respect to ALL of the factual allegations included in the Accusation filed on October 16, 2008, including the charges of:

1. Misuse of trust fund accounts, including maintaining a negative balance.

2.Failure to notify investors of borrower default on investments.

3.Failure to maintain bank accounts in the name of broker as trustee, and failure to designate those accounts as trust accounts.

4.Failure to maintain separate trust fund beneficiary records.

5.Illegally charging financed points and fees in excess of $1000 or 6% of the original principal balance, exclusive of points and fees in numerous loans, in violation of the Predatory Lending Act.

6.Failure to provide required disclosures, in violation of the Predatory Lending Act.

7.Illegal mark-ups on various fees to customers, and pocketing the difference.

8.Failure to disclose to customers in-house ownership of escrow division.

9.Failure to retain proper records and disclosure statements.

10.Failure to retain investor statements of suitability/qualifications/net worth/adjusted gross income.

11.Substantial misrepresentations, including a continued and flagrant course of misrepresentations by intentionally engaging in this unlawful conduct or making of false promises through real estate agents or salespersons, undisclosed compensation, violations of the Real Estate Law, fraud and dishonest dealing and negligence or incompetence.

12.Overall conduct of New Haven Financial and Lawrence Rabinoff constituting negligence or incompetence.

13.Overall conduct of Larry Rabinoff constituting a failure on his part, as officer designated by a corporate broker licensee, to exercise the reasonable supervision and control over the licensed activities of New Haven Financial, and keeping New Haven Financial in compliance with the Real Estate Law.


REAL ESTATE LAWS VIOLATED:

7(a) Code Section 10145 and Regulations 2832.1, 2950(g) and 2951

7(b) Code Section 10233(c)(1)

7(c) Code Section 10145 and Regulations 10145 and Regulations 2832(a), 2950(d) and 2951

7(d) Code Section 10145 and Regulations 2831.1, 2950(d) and 2951

7(e) Financial Code Section 4979.6

7(f) Financial Code Section 4973(k)(1)

7(g) Code Sections 10176(a) and 10176(g) and Regulation 2950(h)

7(h) Code Section 10240 and Regulation 2840

7(i) Code Section 10238(f)(1)