HARD MONEY LENDER CHARGED WITH STEALING $2.5 MILLION FROM INVESTORS IN PONZI AND REAL ESTATE FRAUD SCHEME

OCDASeal

Orange County District Attorney
Press Release


Tony Rackauckas, District Attorney
401 Civic Center Drive West
Santa Ana, CA 92701

For Immediate Release
Case # 09HF0772

 


 

May 6, 2009

Susan Kang Schroeder
Public Affairs Counsel
Office: 714-347-8408
Cell: 714-292-2718

Farrah Emami
Spokesperson
Office: 714-347-8405
Cell: 714-323-4486

HARD MONEY LENDER CHARGED WITH STEALING $2.5 MILLION FROM INVESTORS IN PONZI AND REAL ESTATE FRAUD SCHEME

NEWPORT BEACH – The Orange County District Attorney’s Office filed charges today against a “hard money” lender for stealing $2.5 million from investors in a Ponzi and real estate fraud scheme. Joseph Anthony Veltre, 67, Orange, is charged with 62 felony counts including 38 counts of grand theft, nine counts of forgery, 13 counts of financial elder abuse, two counts of perjury, and white collar crime sentencing enhancements for loss over $100,000. If convicted on all counts, Veltre faces a sentence up to 65 years and six months in state prison. He is being held on $2.5 million bail and must prove the money is from a legal and legitimate source before posting bail. Veltre appeared in court today and is scheduled for continued arraignment on May 22, 2009, at 9:00 a.m. in Department H-2, Harbor Justice Center, Newport Beach.

 

Between 2002 and 2007, Veltre is accused defrauding three people in a Ponzi and real estate fraud scheme. Using his two Orange County based businesses, Sea View Financial and Allied Corporate Investments, Veltre is accused of operating as a “hard money lender” by soliciting money from private investors for borrowers looking for funds from non-bank lenders. He is accused of stealing from his private investors by keeping the money they lent for borrowers looking to take out second and third mortgages and not funding the loan as promised. Veltre is also accused of operating a Ponzi scheme and using funds from new investors to pay off older investors.

 

A “Ponzi” scheme is a fraudulent scheme that offers investors high, short-term returns on investments. Instead of using the money to generate actual income and legitimate profits, the money from the investors is kept for the benefit of the defendant or used to repay earlier investors.

 

The Newport Beach Police Department (NBPD) began investigating after receiving complaints from some of the victims. Veltre was arrested on May 4, 2009, by NBPD.

 

The investigation is ongoing. Anyone with additional information is encouraged to contact Newport Beach Police Economic Crimes Detective Steve Rasmussen at (949) 644-3763 or Supervising District Attorney Investigator Ron Frazier at
(714) 347-8691. Deputy District Attorney George McFetridge of the White Collar Crime Team is prosecuting this case.

 

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