California Investment Scam Results in Securities Fraud Charges and Prison Time
Gary Mountain, 61, has pleaded no contest to five counts offelony securities fraud in San Jose. The charges come in connection with an alleged $1.2 billion real estate
investment scam that affected over a dozen people.
Officials say the investment scam was operated through Mountain's California Star Properties. As a licensed real estate agent, Mountain allegedly obtained a commercial building and a hospital and convinced victims to invest in the properties. Mountain paid very little for the properties, as both were seriously dilapidated. In fact, the city had the commercial building torn down for being a "structural catastrophe." The hospital was also in bad shape and was subject to a balloon payment of at least six figures.
According to court documents, Mountain then convinced his victims to invest in these properties. In at least one case, the victim was convinced to sell her own home at a loss and invest in Mountain's properties instead. The victim was a 68-year-old woman who has since passed away.
A five year prison sentence has been ordered in the case, and Mountain will likely also be required to pay compensation to his victims.
The investment fraud lawyers with David P. Meyer & Associates are devoted to helping victims of Ponzi schemes and other investment scams recover their losses. We have over 50 years of collective experience representing clients in California and nationwide in stockbroker mediation, arbitration, and litigation claims.