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Bay Area real estate agent sentenced on 141-count Ponzi scheme

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Mortgage Professional America | 25 Jun 2014, 08:26 AM Agree 0
San Francisco-area prosecutors uncovered a fraud that wound through decades and sent a 73-year-old real estate agent to prison for eight years
  • PAUL | | 25 Jun 2014, 10:57 AM Agree 0
    I HATE IT WHEN THEY CALL IT MORTGAGE FRAUD. IT IS THEFT AND USUALLY DONE TO PEOPLE WHO KNOW AND TRUST THE THIEF. IN PORTLAND A FEW YEARS AGO A GUY TOOK THE LIFE SAVINGS OF OF SEVERAL PEOPLE IN THEIR 70'S WITH A PONZI SCHEME. THEY ENDED UP BANKRUPT AND ONE COUPLE EVEN LOST THEIR HOME,ENDING UP WITH ABSOLUTLY NOTHING. WHEN HE RAN OUT OF VICTIMS HE RAN TO HIS ATTORNEY AND THEY CONCOCTED A GAMBLING ADDICTION STORY FOR HIM AND HE WAS ABLE TO PLEA TO LESS THAN 2 YEARS. RUINING SO MANY OTHER PEOPLE'S LIVES YET SOME HOW HIS WIFE AND 4 KIDS WERE ABLE TO LIVE IN AND MAKE HUGE PAYMENTS ON THEIR EXPENSIVE HOME AND ATTEND PRIVATE SCHOOLS WHILE HE WAS AT THE CAMP. HE IS OUT NOW AND LIVING INHIS EXPENSIVE HOME WHILE THE VICTIMS WILL NEVER RECOVER. HE IS JUST A 73 YEAR OLD THIEF NOTHING MORE.
  • John | | 25 Jun 2014, 01:01 PM Agree 0
    It is terrible for a friend to scam his friends like this.
    But The victims should bear some of the responsibility. 12% guaranteed return?? Doesn't that raise a RED flag?
    When an investment seems to good to be true, it usually is.

    There will be other victims, because greed is an awful thing.
  • Griff | | 25 Jun 2014, 01:01 PM Agree 0
    Paul, I like your thought process. A thief.
  • Michael | | 26 Jun 2014, 10:55 AM Agree 0
    I always like to hear of the CLAWBACK on the early investors who profited at the expense of the later investors... probably won't happen , seldom does.
  • CW | | 30 Jun 2014, 05:20 PM Agree 0
    Never invest in any real estate other than your primary home unless you can afford to lose the principle. You can only trust yourself and the numbers. I only sell property for people never offer investment or investment advice. The risk associated with loss can be great.

    You will notice that many of the investors are at retirement age and not young like mid 30's who can afford to earn another 25 years.
    The best investment is fixed income once you reach retirement age or Utility stock that pays dividends. Electric or power utilities.
  • BIlly Jim Bobby | | 01 Jul 2014, 12:13 PM Agree 0
    CW , The article refers to a man who put himself above his clients and was a thief not an adviser. He lied and stole money from friends and associates. Real Estate is a great investment and always has been. You have to understand the product and process and it can be very rewarding. I am a lender and have many clients who are fully supported from real Estate and have become very successful from doing so. While I agree that Utilities are good for some please remember that Enron was a Utility. The Point being invest in what you understand and CW selling real estate should involve clients that buy investments as they seem to be in the market even when most others are not...
    Best Of Luck
  • GARY | | 02 Jul 2014, 11:19 AM Agree 0
    ANOTHER STORY FOR American GREED!
  • Lee in CA | | 02 Jul 2014, 02:33 PM Agree 0
    John, I understand your point... and probably would be saying the same thing if I did not have first hand knowledge of it happening to someone. A good friend was bilked out of a lot of money in this exact same fashion. He is a business man, intelligent, and not gullible in the least, but the friend concocted a scheme so complex that it included insurance backing to protect the investors. It smelled fishy to me and I advised him against it, but he checked it out thoroughly and decided to do it. Fast forward 4 years later and the "friend" is under criminal investigation... and all the investors are out 90% of their investment. It is a sad commentary on our society when that level of ingenuity cannot be used for good purposes but rather for simple greed.
  • Investment Manager | | 05 Jul 2014, 02:44 PM Agree 0
    No, 12% return is not a red flag. There are plenty of capital raises for a variety of enterprises, including real estate, which will easily pay 10% to 12%. We have regulated funds doing this right now. Why wouldn't I pay 12% when I am getting returns for twice that?

    The guy was a liar and a crook. That is the issue. No one verified the deals and he was manipulating relationships.
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