Connecticut GOP State Senator David Cappiello, a star GOP recruit who is trying to take on Freshman Dem. Rep. Chris Murphy, lists his full-time occupation as a Mortgage Loan Officer for Danbury-based "Charter Funding."
Things get very murky very quick.
Charter Funding, it turns out, is in fact a business name of a secretive Tuscon, Arizona-based subprime lendor, First Magnus Corp. First Magnus is a privately-helled lendor that operates around the country under literally dozens of different names, often within the same state. First Magnus mortgage shops are franchised out to people like Cappiello (who can apply for franchises and broker licenses online), who then market mortgages (again, mainly subprime) typically to people who have no business getting mortgages.
Rumors have abounded on the interweb in recent days (see for example, here and here and here) that First Magnus is about to collapse under the weight of bad loans.
A number of franchisees have been prosecuted for fraud.
My question: how many of these bad loans were written by Sen. Cappiello?
How many people have lost their homes because of shady ARMs he handed out?
Anybody have any thoughts on this?
In any event, there's apparently a new website coming up -- http://www.firstmagnusnews.com/ -- where somebody (I have no connection with the site) plans to post more information about the apparently shady and shadowy doings of the management. The question outstanding is if any of this trickles down to David Cappiello.
On edit: First Magnus is a registered foreign corporation. Its shareholders are unknown at this time.