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Thursday, Mar 28, 2024
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Three Indicted in Real Estate Scheme

Three San Diego men were charged in a 29-count federal indictment with conspiracy, mail fraud, wire fraud and bank fraud in connection with a real estate-related scheme that bilked investors of about $30 million, according to the U.S. attorney’s office in a statement July 9.

The indictment alleges Matthew La Madrid, Lance La Madrid and Eric Montiel operated a variety of businesses including Innovative Financial Solutions, Real Estate Investment Group and E & M; Property Management, as well as several hedge funds that promised investors hefty returns but in actuality were taking funds from new investors to pay off earlier investors.

The defendants, who were arraigned in federal courts July 9, provided investors with statements indicating the funds were healthy and profitable, and that the principal was intact as of a date in 2006, and one fund contained $13 million when in fact it contained $3 million, according to the indictment.

Federal prosecutors also allege that to obtain money from investors, they fraudulently misrepresented their holdings to banks, which made mortgages totaling about $34 million.

Further, prosecutors said, the defendants misrepresented in loan applications their employment in businesses, their assets and that down payments on the houses were not borrowed funds. They also fabricated bank statements, forged signatures of borrowers and loan officers and paid both tax preparers and notaries to provide letters and verification of the documents’ authenticity, the indictment states.

, Mike Allen

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