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SANTA ANA – A television commentator for the Los Angeles Clippers faces criminal theft charges for allegedly duping a retired school teacher to use his paid-off home as collateral for a $735,000 loan for a failed development investment project, prosecutors said today.
Michael John Smith, 44, of Laguna Hills, will be arraigned Thursday on one felony count of grand theft with sentencing enhancement allegations for loss over $100,000 and property damage over $200,000, according to the Orange County District Attorney's office.
An alleged accomplice – Bruce Howard Furst, 57, also a Laguna Hills resident – faces the same charges.
Smith was friends with the 65-year-old victim, who suffers from an inoperable brain tumor, prosecutors said.
Authorities say the alleged fraud happened around January 2008. Smith, who was involved with Furst in a development project in Dana Point, repeatedly tried to convince the victim to invest in the project, prosecutors said.
The victim kept refusing, but eventually agreed to put up his Dana Point residence as collateral for a $735,000 loan, prosecutors said. Smith and Furst had lied and said the loan was safe and 100 percent guaranteed, they added.
The project didn't pan out, prosecutors said, and the victim wasn't repaid.
Once the home was put for collateral, the victim was required to begin making mortgage payments of $7,200 a month, said Farrah Emami, spokeswoman for the District Attorney's Office.
Smith and Furst failed to make mortgage payments toward the victim's home – which was another promise, prosecutors said.
The victim eventually contacted the Orange County District Attorney's Office in July 2009 for help. He is expected to lose his home, prosecutors said.
Smith, a former Clipper who also played for the Boston Celtics, has been a commentator for eight seasons for the sports team.
Smith's attorney, Dike Huish, could not immediately be reached for comment. Furst also couldn't be reached.
Michael John Smith, 44, of Laguna Hills, will be arraigned Thursday on one felony count of grand theft with sentencing enhancement allegations for loss over $100,000 and property damage over $200,000, according to the Orange County District Attorney's office.
An alleged accomplice – Bruce Howard Furst, 57, also a Laguna Hills resident – faces the same charges.
Smith was friends with the 65-year-old victim, who suffers from an inoperable brain tumor, prosecutors said.
Authorities say the alleged fraud happened around January 2008. Smith, who was involved with Furst in a development project in Dana Point, repeatedly tried to convince the victim to invest in the project, prosecutors said.
The victim kept refusing, but eventually agreed to put up his Dana Point residence as collateral for a $735,000 loan, prosecutors said. Smith and Furst had lied and said the loan was safe and 100 percent guaranteed, they added.
The project didn't pan out, prosecutors said, and the victim wasn't repaid.
Once the home was put for collateral, the victim was required to begin making mortgage payments of $7,200 a month, said Farrah Emami, spokeswoman for the District Attorney's Office.
Smith and Furst failed to make mortgage payments toward the victim's home – which was another promise, prosecutors said.
The victim eventually contacted the Orange County District Attorney's Office in July 2009 for help. He is expected to lose his home, prosecutors said.
Smith, a former Clipper who also played for the Boston Celtics, has been a commentator for eight seasons for the sports team.
Smith's attorney, Dike Huish, could not immediately be reached for comment. Furst also couldn't be reached.
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