Brother and Sister Face Charges in Alleged Real Estate Ponzi Scheme
Joseph LaCoste and his sister Angela McCoy face charges of federal securities fraud, mail and wire fraud, and bank fraud. Their real estate scheme is said to have taken place over a short period of time between April 2006 and December 2007 through LaCoste’s Albany-based company, Willamette Development Services.
The two allegedly took nearly $5.3 million from investors in the real estate scam. LaCoste and McCoy were to use this money for multiple high-end development projects. The investors were supposedly told they would receive high interest rates and a return of principal within three years. None of the promised real estate developments were reportedly ever completed, and investors are estimated to have lost their entire principal of $5,272,000. Willamette Development Services was declared insolvent in 2008.
The pair also faces accusations of lying to investors regarding where the money was going, how far along development projects actually were, and also about commissions and fees that would be received.
Both LaCoste and McCoy have pleaded not guilty to the charges.
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