In what has recently become a tabloid-like mortgage industry story, the San Diego Daily Transcript (Transcript) reported that former PinnFund CEO Michael Fanghella purchased a $1 million, 75 foot yacht in September 2000 with the intention of making a one-way trip to the Caribbean. His estranged wife, Patrice Fanghella, hired a private investigator who discovered that the yacht was preparing for the trip.
Mr. Fanghella is accused by Securities and Exchange Commission (SEC) attorneys of the largest securities fraud in recent Southern California history, according to a previous Transcript story. SEC attorneys say Fanghella — who apparently disappeared after one of his first court appearances in the case — personally stole more than $100 million of a total missing amount of $330 million. Fanghella, PinnFund, an associate and the four Bay Area companies he controlled — Peregrine Funding Inc., Allied Capital Partners, Grafton Partners, and Six Sigma LLC — are named as defendants in a civil case brought by the U.S. Securities and Exchange Commission. In March, the Transcript reported that Fanghella diverted some funds to his former porno-actress girlfriend.
The $1 million yacht was reportedly sold on Thursday. The SEC believes Fanghella is in Port St. Charles, Barbados, where his credit card was last used. He apparently purchased a house in Port St. Charles last year with money from PinnFund’s general account, according to previously filed documents.
