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Monday, Feb 14 2011 04:11 PM

Bail hearing for Crisp & Cole defendant delayed

By THE BAKERSFIELD CALIFORNIAN

A bail review hearing for former loan officer Jayson Peter Costa was continued Monday to 11 a.m. Thursday to allow defense attorneys, pretrial services and prosecutors to look further into some concerns raised privately with U.S. Magistrate Judge Sandra M. Snyder.

The U.S. Attorney's Office wouldn't disclose the nature of those concerns, which were brought up in judge's chambers during a detention hearing Monday in the Eastern California district of U.S. District Court in Fresno.

Costa is one of 10 people connected to Crisp & Cole Real Estate, including principals David Crisp and Carl Cole, who are in federal court for alleged mortgage fraud.

Crisp and Costa are the only two suspects in the case who remain in custody since federal indictments against them were unsealed Jan. 21. The rest are free on bail.

The 10 suspects have been charged with fraud, money laundering and conspiracy, and five others have accepted plea deals for fraud and aiding and abetting.

Prosecutors allege the company used straw buyers to purchase homes and flip them at inflated prices. The alleged crimes cost the mortgage industry at least $20 million, prosecutors said, although most industry professionals say that figure is low.

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