California Real Estate Fraud Report

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03
Jan

Studio City Man Indicted for Real Estate Investment Fraud

David Williams, a San Fernando Valley businessman who operated three businesses in Studio City, was arrested and arraigned on federal charges December 20, 2012 following a 10-count indictment by a grand jury. The charges against Williams, 52, include eight counts of wire fraud, and two counts of tax evasion and are for allegedly running a fraudulent real estate investment program that cost the investors more than $3.75 million.

David Williams is a licensed securities dealer and investment advisor. The names of his three businesses are WFG Holdings, Inc., Williams Financial Group, LLC, and Sherwood Secured Investment Fund, LLC (SSIF). The charges arise out of what federal authorities allege was a private placement offering, in which Williams was to use the investment money via SSIF to purchase real estate primarily and less than 10 percent in non-real estate products.

The indictment charges that instead of investing as promised, David Williams used more than 10 percent of the SSIF funds for non-real estate related business during the period July 2007 and March 2008. These included $896,000 for business expenses incurred by his broker-dealer firm, Morgan Peabody, as well as $569,000 to lease with an option to buy his personal residence; $173,000 for construction and furnishings in his personal residence; $75,000 for clothing and jewelry; $69,000 for family travel; and $35,000 for private school tuition for his children.

Wire fraud charges carry steep sentences if the defendant is convicted – up to 20 years per count – and the penalty for a conviction for tax fraud can be as much as 10 years per count.

Read the original article in the San Fernando Sun.

© Copyright 2007-2017 Monique Bryher

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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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