David Saks: WOMAN SENTENCED TO NINE YEARS IN FEDERAL PRISON FOR RUNNING REAL ESTATE INVESTMENT SCHEME THAT RAISED NEARLY $7 MILLION

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

WOMAN SENTENCED TO NINE YEARS IN FEDERAL PRISON FOR RUNNING REAL ESTATE INVESTMENT SCHEME THAT RAISED NEARLY $7 MILLION

West Covina Woman Sentenced to Nine Years in Federal Prison for Running Investment Scheme That Raised Nearly $7 Million

U.S. Attorney’s Office October 25, 2011
  • Central District of California (213) 894-2434
 
LOS ANGELES—A West Covina woman who admitted running a Ponzi scheme that took in approximately $6.9 million from more than 150 victims has been sentenced to 108 months in federal prison.

Guadalupe Valencia, 47, was sentenced late yesterday by United States District Judge S. James Otero after a nearly five-hour hearing.

In addition to the nine-year prison term, Judge Otero ordered Valencia to pay restitution of $5.2 million, which is the total loss figure.

Valencia has been in custody since she pleaded guilty last December to two counts of mail fraud, two counts of wire fraud, and two counts of tax fraud.

Valencia ran her scheme out of the Downey offices of companies she called Real Estate & Loan Consultants and R.E. Equity Group, Inc.

Beginning in 2001 and continuing through 2009, Valencia promoted two types of investment pools, with one purportedly funding loans to purchase real estate, and a second purporting to fund short-term loans to businesses.

According to court documents, Valencia promised high rates of interest in both investment vehicles—from 8 percent to 20 percent in as little as 45 days.

Valencia 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, Valencia admitted that the investments she promoted did not generate any profits and that she used newer investor funds to pay original investors.

Further, Valencia admitted that she had provided victims with worthless promissory notes that she had created.

Valencia “callously victimized over 150 people,” prosecutors wrote in sentencing papers. “She was a major force in a Ponzi scheme that negatively impacted the lives of the victims and the families of the victims.”

Valencia’s scheme raised approximately $6.9 million.

With Ponzi payments that were made to some victims during the course of the scheme, the actual loss amount is $5.2 million.

In addition to the mail and wire fraud charges, Valencia pleaded guilty to two counts of subscribing to false tax returns for the tax years 2007 and 2008.

In her plea agreement, Valencia admitted that she filed the returns with the Internal Revenue Service knowing that they were false. Specifically, for the 2007 tax year, Valencia failed to report more than $280,000 to the IRS. For the 2008 tax year, Valencia failed to report more than $470,000 on the tax return that she filed.

The investigation of Valencia was conducted by IRS - Criminal Investigation and the Federal Bureau of Investigation.

Courtesy FBI



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 4 commentsDavid Saks • October 25 2011 07:53PM

Comments

Good evening David. Good to see justice served. My heart goes out to the 150 families duped by her.

Posted by Randy Ostrander, Real Estate Broker, Serving Big Rapids and West Central MI (Lake and Lodge Realty LLC ) over 8 years ago

Nasty crime, Randy. Huge losses for many, including the integrity of the business in the region.

Posted by David Saks ((retired)) over 8 years ago

I feel bad fot the people she ripped off ..Guess if sounds to good to be true it is..

Sad people have to live taking advantage of others

thanks for the info David

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) over 8 years ago

Looks like she had the loan consultant company and the equity group juggling two investment schemes, Hannah. I suppose the former for real estate and the latter for business loans. This type of loss will linger in the consciousness of the community for many years; the psychological impact of the fraud creating more suspicion harming legitimate business efforts.

Posted by David Saks ((retired)) over 8 years ago

This blog does not allow anonymous comments