According to a press release by the Office of the California Attorney General, two Sacramento men have been arraigned for allegedly operating a $3.2 million real estate investment fraud that purported to buy and flip foreclosed homes.
California Attorney General Kamala D. Harris announced that Taze Claiborne Ellis (“TC” Ellis), 45, and his son, Taze Jordan Ellis (“TJ” Ellis), 23 were arraigned August 16; both have been charged with dozens of felony counts of grand theft and securities fraud. If the Attorney General’s charges are found to be true, the Ellis’ operated an outlandish fraud in which they solicited monies from the investors, promised them returns of 60% over five years, but brazenly used most of the funds for their personal expenses and fancies. In short, this could turn out to be nothing more than a Ponzi scheme. The businesses through which they received the investment funds were called Blacksand, Inc. and FXKB, Inc. and neither were registered to sell securities in California.
Further, Taze Claiborne Ellis neglected to disclose to his investors that he had been sentenced to four years in prison in 2002 for grand theft and tax fraud.
This case was investigated by the Attorney General’s eCrime Unit and will be prosecuted by the Attorney General’s Special Crimes Unit.