California Real Estate Fraud Report

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20
Feb

Long Beach man pleads guilty to $11 million fraud

Jon James pleaded guilty to federal wire fraud in a Ponzi scheme that prosecutors say defrauded over 50 people to the tune of $11 million.

James’ El Segundo business ran from 2003 to 2006 and consisted of James making presentations at local restaurants, where he lobbied his victims to invest their life savings and retirement funds in real estate transactions that mostly did not exist. Instead, James used the funds from the latest group of investors to pay back earlier ones, a classic Ponzi scheme, as well as helping himself to the money to pay for his wedding and buy a recording studio.

When he is sentenced, Jon James could face more than 20 years in federal prison. But given that the same U.S. Attorney’s Office is requesting only three 3 years for Kyle Grasso (see previous article on the Beverly Hills mortgage fraud gang), James is likely to spend very little time behind bars.

The original article appeared in the Silcon Valley Mercury News.

© 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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