State sues Colfax couple over alleged scamming
A Colfax man convicted in 1998 of equity skimming and theft is again accused, along with his wife, of ripping off investors, renters and distressed homeowners.
The Washington attorney general’s office has filed a lawsuit in Spokane County Superior Court against Anthony and Alicia Napier, claiming the couple skimmed equity from homes, misrepresented their business and illegally marketed securities despite a 2002 judgment against Napier prohibiting him from working in real estate or finance.
“Anthony Napier may not have learned his lesson the first time, but he and his wife better figure it out now,” Attorney General Rob McKenna said.
The lawsuit alleges that the Napiers’ dealings have left a trail of victims who have lost homes, security deposits and investments, including families in Colfax, Endicott and Malden, Wash.
No criminal charges have been filed against the Napiers in Whitman County.
The civil complaint outlines a pattern of deception similar to the crimes for which Anthony Napier was convicted in 1998 and for which he received a 12-month sentence.
The allegations include:
•Equity skimming in which the Napiers purchased homes by promising to pay off existing mortgages and then allowing the homes to go into foreclosure.
•Misrepresenting to investors how their funds would be used and what returns they could expect.
•Illegally marketing and selling securities.
•Using company funds for personal expenses.
In 2004, the lawsuit says, Napier formed a new real estate investment and holding company, Principle Direct Investments LLC and, without telling investors and creditors, transferred company assets to his wife, “substantially reducing the assets of PDI and its ability to repay its obligations.”
The lawsuit seeks a new injunction against the Napiers, civil penalties for violating the 2002 order plus additional penalties for the new violations and restitution for victims.
Assistant Attorney General Jack Zurlini said the consumer protection division would like to wipe out this activity.
In the meantime, he said, “We are warning homeowners to be very wary if someone approaches you to buy your home by taking over mortgage payments.”