Seal Beach Man Faces $300,000 Foreclosure Scam Fraud Charges

September 2, 2011
By The Law Offices of Vincent J. LaBarbera, Jr. on September 2, 2011 1:04 PM |

A Seal Beach businessman now faces 34 counts of fraud and elder abuse in Orange County for allegedly scamming six people out of $300,000.

Real estate fraud in Anaheim is a hot topic these days as the country's housing market has utterly collapsed. Houses that were worth millions at one point have dropped by as much as 50 percent.
As the troubles continue, many investors have looked for someone to blame. They have lost their savings, their retirement or even their play money, but nonetheless, they have lost and now they want someone to blame. Many times, these investors file civil lawsuits and sometimes they complain to the state that their non-guaranteed investment opportunity went south and is somehow a scam.

For those who organize investment opportunities and ended up with something that didn't go as planned, they are often left with a target on their back and facing charges. But these people mustn't lay down, but rather fight the charges head-on by hiring an experienced Orange County Criminal Defense Lawyer.

Police say they arrested the man after an eight-month investigation. They say he enticed investors into an opportunity of buying foreclosed homes in Los Angeles; the deal sought quick returns on their investment after rehabbing and reselling them.

Investigators allege he e-mailed investors updates about the properties, sent them deeds of ownership and said he was investing the profits into new investments. But when the investors demanded their money, he stopped communicating.

Police say the man only purchased one house, for $292,000, and it later went into foreclosure itself. They say the properties he described in communication with investors were real but that he never owned them.

When real estate fraud arrests like this one are made, investigators almost always say that the alleged perpetrator "promised investors" high returns on their investments, as if that is so bad. Think about every sales call you've ever gotten or any opportunity to make money that has come around. Who would start an investment opportunity sales pitch with "We may or may not make money under my plan?"

It's just not realistic. Every investment opportunity is planned out to make money, but there are factors that can make the investment not pan out. It's just like the stock market -- it's far from guaranteed and it's a gamble.

What must be done in these complex cases is an attorney must be able to review financial records of the accused and have access to every relevant document to put together a strong defense to the charges. The moment a person learns they are being investigated or suspect something is up, they must consult with an experienced Orange County Criminal Defense Attorney.

If you are facing criminal charges in Orange County, contact the Law Offices of Vincent J. LaBarbera Jr. to discuss your options. Through three decades of experienced, Attorney LaBarbera has argued over 200 criminal trials and appeals. Call (714) 541-9668 for a confidential appointment to discuss your rights.

More Blog Entries:

DMV Worker Charged With Fraud in Fullerton Over Cash-For-License Scam: August 23, 2011

Santa Ana Couple Accused of Faking Death in Order to Defraud Social Security: August 3, 2011

Additional Resources:

Police Nab Seal Beach Man in Alleged Foreclosure Scam, by Paige Austin, Los Alamitos-Seal Beach Patch