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Temecula man charged in investment fraud scheme

Beware the deal that sounds too good to be true. It very probably is. Unfortunately, too often, the wisdom of the adage is forgotten. The result can be that individuals fall victim to unscrupulous financial fraudsters.

Proving that negligence occurred isn't always easy, but those who suspect they have been victims of wrongdoing stand a better chance of success if they work with an attorney with specific experience in dealing with investment loss recovery.

This word of warning is brought to mind by word this week that federal indictments have been issued against a Temecula man and an Illinois man in connection with alleged investment misrepresentation.

The two men are accused of bilking nearly $1 million out of a number of individuals between 2009 and 2012. According to the indictments the two promised potential investors full return of their initial outlay after a year and guaranteed a set monthly rate of return in interest.

They allegedly made it appear that they were being good to their word by issuing monthly IRS forms showing returns that were never earned. They also are alleged to have drawn on new investor funds to cover interest payments owed to earlier investors.

In the end, officials claim the two spent a large portion of the funds on themselves and on maintaining the scheme. In 2009, whatever was left was allegedly placed in non-guaranteed investment.

The two defendants each face multiple charges of mail fraud and wire fraud. Each of the counts carries a possible penalty on conviction of 20 years in prison and a fine of up to $250,000. Restitution could also be ordered.

The number of victims from the alleged crimes isn't clear.

Source: Newsroom America, "Two Men Charged In Nearly $1 Million Investment Fraud Scheme," Feb.12, 2014

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