Real Estate Ponzi Schemes Rampant in Recent Years

Turbulent economic times have led many an investor to believe in opportunities that are, indeed, too good to be true. While the ruse can take many guises, real estate Ponzi schemes in particular have been extremely common over the past several years. The following are just a few examples of the most recent notorious real estate Ponzi schemes.

2010
William Arthur Sassman II was sentenced to a prison term of 18 years after pleading guilty to 13 counts of grand theft in relation to a real estate Ponzi scheme. In a $4.45 million operation, Sassman allegedly promised high-yield returns from investing in foreclosure properties and other properties in Mare Island (Vallejo) and commercial properties in El Dorado. Most of the investors were senior citizens that Sassman allegedly targeted using his book, Secrets of a Worry Free Retirement.

Antoinette Hodgson was sentenced to six years in prison in December for running a $50 million real estate Ponzi scheme that solicited fraudulent investments from New York and New Jersey residents. Hodgson allegedly duped investors into providing millions for investments in real estate. Instead, Hodgson reputedly used the money to pay off other investors in the scheme and to enrich her estate, the lives of her family members, and her personal lifestyle.

2009
Matthew and Lance La Madrid admitted that the collapse of their fraud scheme caused losses of between approximately $20 million to $50 million for purposes of sentencing, according to prosecutors. Operating under the cover of "Real Estate Investment Group," Matthew admitted that he fraudulently obtained funds by falsely promising to secure real estate investments with deeds of trusts. In reality, the deeds of trusts were not recorded. Prosecutors said that victims lost their investments when the properties purportedly securing the notes were sold.

Dan Wise, a former Scottsdale CPA, was arrested on theft and fraud charges in 2009. The SEC complaint names Wise and his four companies, Whispering Winds Properties, LLC, LM Beagle Properties, LLC, Karlena, Inc., and Axis International, Inc. Wise allegedly raised more than $67 million by touting 15 years of experience in real estate investments and promising investors annual returns as high as 22 percent. Investigations are still ongoing.

The Law Firm of Meyer Wilson

If any of the real estate Ponzi schemes described above sound similar to something you have experienced, then you may be able to recover losses.

The first step to take if you suspect financial fraud is to contact an experienced investment fraud attorney. A dedicated securities fraud attorney will take the time to go through the background information of your case in order to determine the best course of action. For more information, contact the law firm of Meyer Wilson by calling toll free 866-827-6537 or filling out our online form.