California Real Estate Fraud Report

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20
Sep

Sacramento Ponzi Scheme Costs Investors Dearly

Five Sacramento-area residents have been charged by a federal grand jury for ripping off 180 investors to the tune of $26 million in what appears to be a Ponzi scheme.

Alleged ringleader, Michael Bolden, 57, is no stranger to law enforcement. Back in 1994, the former air traffic controller was sentenced to 21 months for falsifying tax documents in order to qualify for home loans (loan fraud).

Bolden ran Diversified Management Consultants Inc., or DMC, a firm that acted as an umbrella organization over half a dozen investment clubs. Many of the investors pulled equity out of their homes and some have had to file bankruptcy. Much of the investment money was used, according to the grand jury, by Bolden to buy luxury cars and pay for improvements to his home.

The other defendants are Christopher Jackson, 43; Victor Alvarado, 50; and Nicholo Arceo, 38, and his wife Erica Arceo, 43. Gary Bradford, 62, a sixth defendant who ran one of the investment clubs, has already pleaded guilty to six counts of fraud and will be sentenced in April 2012.

Read the original article in the Sacramento Bee.

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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