July 11th, 2014 at 10:41am
Aldo Baccala, 73, a former real estate agent who pleaded no contents to a 141-count of criminal charges for a Ponzi scheme, was sentenced to 20 years in prison by Judge Gary Medvigy. Judge Medvigy also ordered Baccala to pay a $6.4 million fine for the havoc he wrecked on his investors, most of whom were financially ruined. Some of his victims were said to be close friends.
Prosecutors and Probation Department officials had recommended 137 years and four months in prison for the crimes, which included counts of securities fraud and grand theft with enhancements for elder financial abuse and white-collar crime. The crimes occurred from 2004 to 2008
Prior to sentencing, many victims testified how their life’s savings of over 40 years were wiped out by Baccala, who blamed the losses on the economic downturn. Baccala’s statements were countered by prosecutors, who said Baccala knowingly defrauded investors by issuing promissory notes backed by properties he didn’t own and that he used the monies he received to pay earlier investors, make risky stock market investments of course treat himself to a lavish lifestyle.
Read the original article in the Press Democrat.
April 4th, 2014 at 8:50am
Benny Chetcuti Jr. was indicted last week by a federal grand jury on two counts of wire fraud, according to the office for U.S. Attorney for Northern California Melinda Haag.
Chetcuti’s business, which began in 1998, was buyer, renovating and reselling homes. He financed his business by obtaining private loans from investors. According to prosecutors, however, he defrauded the investors by overstating how much debt was secured by the properties. He also in some cases did not record deeds of trust on the properties, which would have protected the interests of the investors in those properties.
Read the original article in the San Ramon Express.
March 19th, 2014 at 6:01pm
A Petaluma man was pleading no contest in Sonoma County Superior Court Wednesday morning to bilking dozens of investors of $20 million through a Ponzi scheme.
Aldo Baccala, 73, a former real estate agent, has pleaded no contest to 141 charges of making false statements to sell securities, grand theft, and elder financial abuse and dependent financial abuse. He entered his plea in front of Sonoma County Superior Court Judge Gary Medvigy, who indicated he would sentence Baccala to 20 years or less of prison time in exchange for making his plea.
Baccala was charged with defrauding over 50 investors, many of them elderly, of over $20 million in a Ponzi scheme that promised returns for investing in assisted living facilities, a car wash and other businesses in California, South Carolina and other states. His company was called Baccala Realty and was based in Petaluma.
Instead of investing his victims’ money as promised he spent it on risky stock market investments, including covering margin calls.
Read the original article in KTVU.com
March 19th, 2014 at 5:32pm
An Orange County woman who was found guilty in November 2012 of cheating a group of San Diego nuns out of $285,000 has been sentenced to three years in federal prison and ordered to repay the nuns.
Linda Rose Gagnon, 59, of Tustin had approached the nuns from the U.S. Province of the Religious of Jesus and Mary Inc. about purchasing the retirement home in San Diego. After she convinced them to give her the $285,000 she spent the money on herself instead of making the purchase.
Assistant U.S. Attorney Rob Keenan said Gagnon does not possess either a real estate salesperson’s or broker’s license.
Gagnon must surrender on or before June 13 to begin serving her 37-month sentence.
There are two earlier postings on the California Real Estate Fraud Report about this case, which you can find by using the Search feature on the left side of the blog.
Read the original article in San Diego 6.
February 6th, 2014 at 8:09am
Two men who once owned a company called Pacific Property Assets were charged with mail fraud, bank fraud and bankruptcy fraud in an a 16-count indictment that prosecutors allege was a $110 million Ponzi scheme.
John Packard, 63, Long Beach, and Michael Stewart, 66, Phoenix, Arizona, are alleged to have refinanced the apartment buildings they owned multiple times, using the proceeds for themselves, company expenses and to pay back earlier investors and lenders. When the real estate market began collapsing in 2007, the men at first allegedly lied about its financial status in order to get more loans, then went bankrupt in 2009.
The losses were $100 million to the lenders and another $91 million to the investors. Only $25 million has been recovered thus far by the banks but there has been no recovery for the investors, who numbered approximately 647.
The case against Packard and Stewart was filed by the U.S. Attorney’s Office in Los Angeles and reported in its press release.
Read the original article in UPI.
February 5th, 2014 at 9:33am
Ilona Winegardner, 61, who owns New Life Financial Real Estate and New Life Construction, has been charged by the San Bernardino County District Attorney’s office with a variety securities-related charges. Prosecutors allege that in the space of two years, Winegardner duped investors in a real estate investment fraud.
Winegardner was arrested January 8 and is scheduled for arraignment on February 26 in Victorville.
Read the original article in the Press Enterprise.
January 30th, 2014 at 6:40pm
The man known as a “closer” among his fellow defendants was found guilty by a federal jury today a real estate investment fraud scheme that cost investors almost $37 million.
Christopher Jackson, 46, was part of a company known as Diversified Management Consultants, or DMC. Court documents indicated that between 2003 and 2009, DMC operated purportedly to help people save their homes from being foreclosed and also was a real estate investment company. Jackson’s company, Genesis Innovations, induced the 80 or so investors it recruited to invest over $10 million, whether from savings, IRAs or cash-out loans against their residential mortgages.
As with many failed real estate investments, some of the money was returned to earlier investors and other money was used to finance expensive cars, vacations and other luxury items. In Jackson’s case, only about 25% was actually spent on developing real estate.
U.S. District Judge Troy L. Nunley ordered Jackson remanded into custody immediately after the jury’s verdict. Jackson is to be sentenced April 10.
Jackson’s co-defendants, Michael Bolden, 60; Victor Alvarado, 52; Nicholo Arceo, 40; Erica Arceo, 45; and Garry Bradford, 65, all of Sacramento, previously pleaded guilty to charges of conspiracy, wire fraud and false statements and are waiting to be sentenced.
Read the original article in the Sacramento Bee.
December 20th, 2013 at 10:12am
Thomas Franklin Tarbutton, 54, A fugitive hard money lender, was plucked by Panamanian authorities as he was trying to enter Costa Rica and extradited to Orange County.
The Orange County District Attorney’s Office had issued a $2 million for Tarbutton’s arrest after charges were filed against him for allegedly keeping money from his investors (title fraud). The investors had allegedly been provided forged property documents by Tarbutton and his company Villa Capital filed with the Orange County Clerk-Recorder Department showing that the investors were lien holders on property deeds, which they were not. Instead, authorities believe he kept their money for his personal use.
After being investigated by both the FBI and the OCDA, Thomas Tarbutton was charged with 29 felony counts, including grand theft and forgery. He was further charged with sentencing enhancements and allegations for loss over $100,000, property loss over $3.2 million, and aggravated white collar crime.
Read the original article in the OC Weekly.
December 16th, 2013 at 9:34am
James Duncan, who both masterminded the $142 million real estate and investment fraud that rocked Riverside County and who then cooperated with prosecutors to obtain convictions against his former colleagues, has had this plea-bargain sentence imposed.
Riverside County Superior Court Judge Michele Levine ordered Duncan to serve 19 years and eight months in state prison after accepting the recommendation of Chief Deputy District Attorney Vicki Hightower.
Duncan must also pay $3.4 million in restitution to 33 victims, who lived in several states.
James Duncan acted as a central witness in the trials of his former business partner Hendrix Montecastro and Montecastro’s mother Helen Pedrino in what prosecutors described was a massive Ponzi scheme. Montecastro and Pedrino have filed motions for new trials following their convictions.
Previous guilty pleas and sentences have been imposed on Maurice McLeod, a top associate, Charlie Sung Choi, Cindi Grace Kelly and Thuan Nhan Du.
Read the original article in the Press Enterprise.
December 12th, 2013 at 1:11pm
Kaveh Vahedi, the subject of earlier postings on the California Real Estate Fraud Report, was sentenced last week to 18 years in prison for defrauding investors in three separate scams.
U.S. District Judge Dean Pregerson handed down the sentence and described the Ponzi scam that Kaveh Vahedi created “one of the most heartbreaking, vicious fraud schemes” that he has ever seen. He also ordered the 52-year old Vahedi to repay nearly $9.8 million to his victims. Recovery is unlikely as the FBI has been unable to locate any of the $12 million Vahedi’s victims gave him to invest in his company KGV Investments.
For his part, Kaveh Vahedi told the judge he was merely stupid but not a bad person. The judge, however, trusted the letters he received from the victims, many of whom lost everything and suffered divorces, health problems and difficulties feeding themselves and their families as a result of Vahedi’s actions.
In November 2012, Vahedi pleaded guilty to one count of wire fraud for the Ponzi scheme and one count of conspiracy in connection with committing mortgage fraud.
Read the original article in the Glendale News Press.