Developer Enters Plea in Quake Fraud Case
A real estate developer accused of using federal earthquake repair money to buy personal luxury items pleaded not guilty Monday to 16 counts of fraud, according to an assistant federal attorney.
Thomas Bell, owner and president of the Studio City-based Bell Diversified Development, Inc., was accused of spending more than $375,000 to pay for a Range Rover, diamond jewelry, a down payment on a new home and personal debts, according to Assistant U.S. Atty. Nathan Hochman.
Bell also allegedly submitted fake contracting bids and lied to auditors from the federal Department of Housing and Urban Development to prove he spent the money restoring three Los Angeles properties damaged in the 1994 Northridge earthquake, Hochman said.
The Studio City developer, who was named in at least one other alleged misappropriation of public money, said through his attorney that no HUD money was misused and the repair work he was supposed to do was completed.
The case is scheduled to be heard by U.S. District Judge George King on June 25.
If convicted, Bell could face up to 100 years in prison, a $3.75-million fine and full reimbursement of stolen money, Hochman said.
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