April 02, 2001 04:37am
Mortgage Co.'s collapse laid at feet of porn star
Source: Philadelphia Daily News and Inquirer
by: Earni Young
(PHILADELPHIA, PA) -- None of the dozen local people who was thrown out of work when a multimillion-dollar mortgage swindle collapsed is likely to be a fan of the movies "Blonde Angel" or "Sexual Healing."
But Kelly Jaye, star of those X-rated flicks, is at least partly responsible for the workers' present state of unemployment, authorities say.
Apparently the porn star had some important assets that attracted Michael J. Fanghella, chief executive of PinnFund USA.
The Securities and Exchange Commission (news - web sites) says Fanghella used $107 million of the California-based mortgage company's money to pay for a lavish lifestyle for Jaye, who was his girlfriend and whose real name is Kelly Cook.
SEC filings allege that Fanghella bought Cook a $5 million house, gave her $2 million in cash, a $75,000 piano and sent her to New York on shopping trips. Later, Cook threw Fanghella out of the lavish house in Laguna Miguel, Calif.