T
he FBI entered the Newport Beach offices of Continuum Analytics on September 11, according to a letter from Paul Hastings that Reuters received. Continuum, an affiliate of the Cantor Group funds, is tied to the $160 million of bad loans that Zions Bank and Western Alliance have recently highlighted. The agency, part of the Justice Department, did not issue a statement, and Continuum’s representatives declined to comment.

    A Cantor Group lawyer said the firm honored the loan terms and offered no comment on the investigation. Allen Matkins, representing other Continuum‑linked entities, wrote on October 2 that its clients were the subject of search warrants linked to a pending criminal probe and that a grand jury had been convened. The letters did not disclose the specific criminal authority or alleged misconduct, and prosecutors often hold grand juries to gather evidence without implying wrongdoing. Many investigations never lead to charges.

    This is the first time Reuters has reported the FBI’s search and probe. The scrutiny could reverberate through the complex web of investors and lenders involved in Continuum’s real‑estate deals, some of which are already embroiled in civil litigation. Paul Hastings and Allen Matkins are representing parties in a tangled real‑estate dispute; the Allen Matkins letter was filed in a California court. When asked, a Paul Hastings lawyer said the firm was “working to unravel multiple levels of alleged fraud,” but offered no further details.

    In related actions, Zions Bank sued Cantor Group fund guarantors Andrew Stupin and Gerald Marcil on October 15 to recover more than $60 million in sour commercial and industrial loans. Western Alliance had sued the same pair and another Cantor fund in August to recover nearly $100 million.