By Denny Walsh
dwalsh@sacbee.com
In an unexpected turn, a Chico man pleaded guilty today in federal court in Sacramento to $21 million in mortgage fraud.
Garret Griffith Gililland III also agreed to testify in the pending mortgage fraud case against Loomis Wealth Solutions.
The Loomis case is the largest mortgage fraud case in the history of the Sacramento region.
As investigators moved in, Gililland fled his Chico mansion with $250,000 in cash, opened a nightclub in Colombia with his common-law wife and later moved on to Spain. He and Nicole Magpusao were arrested and fought extradition from Spain for a year. Magpusao also pleaded guilty Thursday in connection with the case.
Prosecutors are hopeful that Gililland's testimony will mean trouble for Lawrence Leland "Lee" Loomis, founder and president of the now-defunct Loomis Wealth Solutions and the man they believe is the mastermind of one of the most massive mortgage and investment frauds in the nation. No criminal charges have been filed against Loomis, a Roseville resident.
IRS special agents characterize Loomis Wealth Solutions as a giant Ponzi scheme that defrauded $100 million from investors and mortgage companies.









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