|For Immediate Release
Case # 11WF1645
November 17, 2011
|Susan Kang Schroeder
Chief of Staff
MAN TO BE ARRAIGNED FOR STEALING OVER $300,000 FROM INVESTORS BY FALSELY PROMISING TO FLIP FORECLOSED HOMES FOR A PROFIT
WESTMINSTER – A man will be arraigned tomorrow on charges of stealing $302,000 from investors by fraudulently promising to buy and re-sell foreclosed homes for a profit. John Wesley Martynec, 36, Long Beach, 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. 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 bail and is scheduled for a continued arraignment tomorrow, Nov. 18, 2011, at 9:00 a.m. in Department W-14, West Justice Center, Westminster.
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.