3 arrested in $1M Southern California mortgage refinance fraud

The co-owner of a Southern California mortgage brokerage and two associates have been charged with stealing nearly $1 million from more than 70 homeowners by falsely guaranteeing them attractive loan refinances.

The California attorney general's office said Wednesday that ALG Capital President Sean McConville was arrested at his home in Austin, Texas.

Another three people were charged in September with the scam, which allegedly took place from April 2007 to October 2008.

Prosecutors say the men falsely promised borrowers low interest rates, minimal broker fees and other attractive terms and forged their signatures on lenders' contracts with more stringent terms.

McConville is being held at the Travis County Jail in Texas pending extradition.

Copyright 2010 The Associated Press.

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