Luis Fernandez, of Folsom, has been sentenced to almost five years in prison
in connection with an alleged
affinity fraud and investment fraud scheme that targeted investors native to the Dominican
Republic. Fernandez owned Fernandez Financial, Inc. and is accused of
luring in 50 investors with the
Ponzi scheme-style scam.
According to court documents, Fernandez offered monthly returns of 3%
to investors. He brought in $7.4 million in this fashion, but he is accused
of using the money to pay off earlier investors and himself.
Although some of the money was actually invested, Fernandez sustained
losses for five out of the six years he ran the alleged scam. It is alleged
that Fernandez misrepresented the investments, and reported that his company
was doing well regardless of the performance of the market. Authorities
say he concealed his losses and provided investors with false documentation.
Despite these losses, officials say Fernandez was able to pocket close
to $1 million and purchase an expensive home and car.
Fernandez has been sentenced to four years and nine months in prison.
He will be required to pay restitution to investors and has also been
ordered to serve three years of supervised release after the prison sentence.
We represent investors nationwide in
stockbroker mediation, arbitration, and litigation. If you have questions about your options
after losing money in a Ponzi scheme, speak with one of our experienced
and respected securities fraud attorneys today.