California Financial Advisor Accused of Running a Ponzi Scheme
A California financial advisor has been accused of stealing nearly a quarter-billion dollars in a real estate Ponzi scheme. A federal grand jury has handed down a 23-count indictment to 60-year-old Bruce Fred Friedman for allegedly defrauding investors out of approximately $228 million.According to the indictment filed in the U.S. Court for the Central District of California, Mr. Friedman operated the Ponzi scheme between 2004 and March 2009 through his Sherman Oaks-based Diversified Lending Group (DLG), which he is listed as the owner and operator.
Investors were supposedly told that their money was being used for the rehabilitation of “scratch and dent” properties and that DLG owned numerous properties that offered a study stream of rental income. Investors were allegedly guaranteed an annual rate of return of 9 to 12 percent.
However, it appears that Mr. Friedman may have used the majority of the money to benefit his personal lifestyle, as well as to enrich family members by investing in companies affiliated with them.
Court documents reveal that Mr. Friedman never disclosed to investors that he had previously served two years in prison for grand theft in 1981 and that he had filed for Chapter 7 bankruptcy in 1993.
Mr. Friedman has been charged with 15 counts of mail fraud, seven counts of money laundering and one count of wire fraud. He faces a potential 390-year prison sentence.
Mr. Friedman was arrested on September 13, 2010, in Cannes, France, and is currently awaiting extradition to the United States.
The Law Firm of David P. Meyer & Associates
If you have lost money in a Ponzi scheme, you should contact an experienced investment fraud attorney for a free case evaluation by calling toll-free 1.866.827.6537 or filling out our online form. Our lawyers are licensed in Ohio and we represent investors nationwide in securities arbitration and litigation claims.
Get Your Copy Of This Investment Fraud Report - FREE!
Five Signs of Investment Fraud…And What to Do if it's Happened to You is intended to to expose the ugly truth behind investor fraud and its devastating consequences
Learn how to recognize the key signs of investor fraud and what to do if it's happened to you... BEFORE IT'S TOO LATE. David P. Meyer is a renowned securities and investment fraud attorney. If you entrusted your investments to a financial professional and are worried that fraud or illegal conduct has occurred, you simply CANNOT take any chances, you NEED to get yourself a copy of this report today.
Click here to get your complimentary copy.
Investment Fraud Attorney | Securities Arbitration Attorney | Securities Fraud Attorney | Stockbroker Arbitration Attorney | Stockbroker Misconduct
Post a comment
Post a Comment to "California Financial Advisor Accused of Running a Ponzi Scheme"
To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."