OAKLAND -- A prosecutor told a federal judge Thursday that more indictments are expected in the coming months in the widening probe of developer Seeno Homes and its affiliates stemming from a 2010 FBI raid of the firm's Concord headquarters.

During a hearing for Seeno sales executive Carey Hendrickson, Assistant U.S. Attorney John Hemann told the judge that the federal government in two to three months expects to add more defendants in related cases showing a "broader scheme to defraud."

He added that federal prosecutors collected thousands of emails from Hendrickson and about 5,000 pages of bank documents related to three counts of felony wire fraud lodged against her. The government alleges that Hendrickson, 36, of Martinez, who still works for Seeno Homes, participated in a scheme that inflated the value of four homes she tried to buy in a struggling Pittsburg development owned by her employer.

A federal grand jury indicted Hendrickson on April 24. She faces up to 60 years in prison if convicted on all three counts and has been free on $50,000 bail.

Court documents show the developer's activities fit what the mortgage industry calls a "builder bailout," which entails inflating the value of homes to help allow developers to maintain a stronger cash flow during down times.

Hendrickson returns to court June 28 for a status hearing.

Contact Matthias Gafni at 925-952-5026. Follow him at Twitter.com/mgafni.



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