Local law enforcement arrested Edwin Hetherton and Peter Scalise for six counts each of real estate fraud and six counts each of identity theft as part of a two year Sacramento Police Department real estate fraud investigation.
Hetherton and Scalise worked together under Hetherton's company, Azzure Financial, and neither of them were licensed with the Department of Real Estate. They were using another broker's license information without permission, under which they collected loan commissions. At least six fraudulent mortgage loans were facilitated by the two suspects, totaling over $2,000,000.00. Some of these loans ultimately defaulted.
Warrants were issued for both suspects. On June 9, 2010, Hetherton was arrested for his outstanding warrant by the Roseville Police Department. Later that day, Scalise turned himself into the El Dorado County Sheriff's Department.