San Luis Obispo Man Pleads "No Contest" in $2 Million Investment Scam
A San Luis Obispo County man has pleaded no contest for his participation
in an investment scam involving more than $2 million. Leonard Delk, 82,
of Los Osos entered his pleas on Tuesday, 12, 2010.
According to prosecutors, Mr. Delk’s investment scam affected at least 23 unsuspecting investors and involved more than $2 million. Mr. Delk, who was arrested nearly two years ago, entered his pleas to eight counts, including grand theft by embezzlement and unlawful sales of securities.
Mr. Delk allegedly used the money to invest in the stock market. He also supposedly used money from new investors to pay off existing investors in his apparent Ponzi scheme. The charges stem from his connections with his Los Osos company, LAD Management.
Mr. Delk started off trying to help his investors, but was affected by the plunging stock market, according to his attorney, James Royer.
Reports indicate that when Mr. Delk was arrested, he claimed that he never used his clients’ money for personal use.
Authorities are continuing their investigation into Mr. Delk’s business activities, as they prepare for trial.
He faces up to 10 years in prison for duping his investors. Mr. Delk is scheduled for sentencing in December 2010.