Saturday, February 20, 2010

California Man Pleads Guilty To Defrauding Investors Out Of $1 Million In Ponzi Scheme

Jon Weldon James, 33, of Long Beach, California, pleaded guilty to wire fraud charges in connection with a Ponzi-type investment fraud scheme that defrauded some 50 investors out of at least $11 million. Prosecutors alleged that between late 2003 and August 2006, James lured investors into fraudulent real estate investments; instead paying for personal expenses and earlier investors. James reportedly used his companies, J.W. James and Associates, Inc., and The Cloaking Device, Inc. as the fraudulent investment vehicles. He is scheduled to be sentenced on May 24 and faces up to 20 years in prison, plus fines and restitution.

Read the story here.

Read the DOJ announcement here.

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