Man Arrested for Promising Investors He Would Flip Foreclosures
ohn Wesley Martynec, 36, Long Beach, California, was arrested on charges of stealing $302,000 from investors by fraudulently promising to buy and re-sell foreclosed homes for a profit.
Martynec is charged with eight felony counts each of grand theft and selling securities in issuer transaction without qualification, six felony counts each of untrue statements in connection with a purchase or sale of securities and the use of a scheme to defraud and five felony counts of financial exploitation of an elder.
In addition to the 33 charges, Martynec is facing multiple sentencing enhancements and allegations including loss over $100,000, property loss exceeding $200,000 and aggravated white collar crime over $100,000.
Between August 2009 and August 2010, Martynec is accused of stealing $302,000 from four investors, Patrick L. and Howard H., both 78, Howard H.'s son Michael H., and Chris L.
The defendant is accused of telling these investors that he had 10 years of experience in buying and flipping foreclosed homes for a profit.
Martynec is accused of receiving money from investors under the pretense that it would go towards buying distressed homes, but failing to purchase any property, contrary to what he promised his investors.
On Aug. 27, 2009, Martynec is accused of receiving $29,500 from Patrick L. and Michael H. after showing the victims a property. The defendant is accused of taking an additional $63,000 from Michael H. to purchase another property. Martynec is accused of taking a total of $92,500 from Michael H. The defendant is accused of also receiving an investment of $10,000 from Howard H.
In February, March and July of 2010, Martynec is accused of receiving a total of $70,000 from Patrick L. under the guise of purchasing other properties, which were never purchased. Martynec is accused of taking a total of $99,500 from Patrick L. The defendant is accused of meeting Chris L. through Patrick L.
On May 13, 2010, Martynec is accused of receiving $60,000 from Chris L. and later on Aug. 18, 2010, receiving an extra $40,000 under the guise of purchasing properties that were never purchased. Martynec is accused of taking $100,000 from Chris L.
Martynec is accused of issuing falsified documents including deeds of trust, fabricated investment summaries and 1099 interest statements to his four investors.
On Sept. 13, 2010, Michael H. questioned Martynec about the investment summaries he was receiving and discovered they were fabricated. Martynec was reported to the Seal Beach Police Department, who subsequently began an investigation.
If convicted, Martynec faces a maximum sentence of 30 years and eight months in state prison. The defendant is out of custody on $150,000 jail and is scheduled for a continued arraignment Nov. 18, 2011, at 9:00 a.m. in Department W-14, West Justice Center, Westminster.
Deputy District Attorney George McFetridge of the Major Fraud Unit is prosecuting this case.
Courtesy Mortgage Fraud Blog



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.
Department of Justice Legal Policies
Click "HERE" For Today's Question
Saturday Nite
9pm-12am Central
University of Memphis
WUMR
Support
America's Hobby
Mr.Saks' participation in ActiveRain ended April 13, 2015.
His blog archives will remain online.
May God bless you.
Due diligence. Get references check them and see the guys / gals credentials. If they cant back up the talk its time toeither walk or better yet RUN!
Good advice, David. He probably had ten years of experience of swindling. Happy holidays....