In Los Angeles, California, a West Covina woman who admitted running an investment ponzi scheme that took in almost $7 million from about 150 victims has been sentenced to 108 months in federal prison.
Guadalupe Valencia, was sentenced in a United States District after a five-hour hearing. She was also to pay restitution of around $5 million. She has been in custody since she pleaded guilty last year to two counts of mail fraud, two counts of
wire fraud, and two counts of tax fraud.
She ran her ponzi scheme out of the Downey offices of companies she called Real Estate & Loan Consultants and R.E. Equity Group, Inc. Starting in 2001 and through 2009, she promoted two types of investment pools, with one funding loans to purchase real estate, and a second to fund short-term loans to businesses. She promised high rates of interest in both investment vehicles, from 8 percent to 20 percent in 45 days. She admitted that she falsely told investors that their investments were fully secured, backed by deeds of trust on valuable real estate, as well as promissory notes that equaled money-back guarantees.
When she pleaded guilty, she admitted that the investments she promoted did not generate any profits and that she used newer investor funds to pay original investors. Further, she admitted that she had provided victims with worthless promissory notes that she had created.
In addition to the mail and wire fraud charges, she pleaded guilty to two counts of subscribing to false tax returns for the tax years 2007 and 2008. She admitted that she filed the returns with the Internal Revenue Service knowing that they were false.
If you have been arrested for a federal crime anyhwere in California, you will need a lawyer who is familiar with federal law.
At the Law Offices of Cron, Israels and Stark, we have been defending clients in federal court for decades. Our Los Angeles federal crime lawyers have handled ponzi scheme related charges that include mail fraud, wire fraud, and other
white collar crimes.
If you are currently under federal investigation, contact one of our Los Angeles wire fraud attorneys for a free case evaluation. We are available 24/7 to discuss your case. Time is important, so do not delay in contacting our office today.