Investment Fraud Results in 43 Federal Counts
A federal grand jury indicted and charged three partners at a Monterey investment firm with 43 federal counts. The three suspects were arrested on Thursday, October 7, 2010, by federal regulators.
According to the office of Melinda Haag, U.S. Attorney for the Northern District of California, the three executives, Barbara Alexander, 63, Beth Pina, 44, and Michael Swanson, 62, were indicted in federal court in San Jose, California.
The 43 federal counts include mail, wire and securities fraud, as well as money laundering. On separate charges, the U.S. Securities and Exchange Commission (SEC) charged the suspected investment scam artists with securities fraud.
The indictment alleges that the three individuals were partners at Monterey-based APS Funding Inc. They have been accused of raising more than $7 million from investors, telling the unsuspecting investors that the money would be used to make short-term, high-interest loans for real estate and business purposes.
However, 90 percent of the money raised between 2006 and 2009 was allegedly used for “personal use” by the three suspects.
Ms. Alexander, who hosts the syndicated radio show, Money Dots, has been accused of using her radio show to lure investors into their investment scam. She has been accused of using nearly $200,000 to remodel her kitchen.
Ms. Alexander and Mr. Swanson were both arrested in Monterey County. Ms. Pina was arrested in her hometown of Fairfield, Idaho.