Once in awhile
they do get caught. Sometimes it seems like not often enough but then
one comes out of the woodwork like this. Over 600 investors
were taken advantage of! Promised returns of up to 50% in as
little as a months time! My sweet Lord, people
– does this not strike ANYBODY as being pretty far out there?
Don’t these ‘investors’ bear some
responsibility just for being unusually, oh I don’t
know…GULLIBLE? Or would greedy & stupid be more to
the point.
And to make
matters worse, in addition to a classic
Ponzi scheme, plus taking
advantage of people facing foreclosure on their home, she
added insult to injury by combining it with an affinity fraud
targeting her specific ethnic group – in this case African
Americans.
NEWS
RELEASE
For Immediate Distribution
January 20, 2009
Thomas P.
O’Brien
United States Attorney
Central District of
California
www.usdoj.gov/usao/cac
WOMAN WHO PROMISED TO HELP HOMEOWNERS AVOID
FORECLOSURE SENTENCED TO OVER 12 YEARS IN PRISON FOR
TAKING MILLIONS FROM INVESTORS IN FRAUDULENT SCHEME
The
promoter of an $18 million real estate investment scheme that targeted
African-American individuals in Southern California and other states
was sentenced today to 151 months in federal prison.
Jeanetta M. Standefor, a 40-year-old
resident of Altadena, California, was sentenced in Los Angeles federal
court by United States District Judge Percy Anderson. In addition to
the prison term, Judge Anderson ordered Standefor to pay $8,688,924.
Through her Pasadena-based company,
Accelerated Funding Group (AFG), Standefor operated a bogus
"foreclosure reinstatement" program that attracted more than 600
investors between 2005 and 2007. The scheme purported to use investors'
funds to cure defaults on distressed properties about to be put into
foreclosure. While soliciting investor money and promising returns of
up to 50 percent in time periods as short as one month, Standefor and
AFG were instead operating a Ponzi scheme that used money from new
investors to pay previous investors.
Standefor pleaded guilty in September
2008 to two counts of mail fraud
"Ms. Standefor exploited the housing
crisis for her own benefit with false promises of help for troubled
homeowners and fictitious profits for those willing to help,”
said United States Attorney Thomas P. O'Brien. “While there
are legitimate companies that work with distressed homeowners,
investors and mortgage holders must carefully consider any offer of
assistance, particularly when there are suspicious promises that seem
too good to be true.”
Standefor’s fraud was what is
commonly called “affinity fraud,” that is, a fraud
directed at a particular community. Standefor and AFG targeted
investors in the African-American community through a now-defunct Web
site, word of mouth, real estate seminars and testimonials by other
seemingly successful African-American investors.
Standefor claimed investor funds
would be used to assist owners of distressed properties. Written
materials put out by AFG touted its foreclosure reinstatement program
as "virtually risk-free" and promised investors that their principal
would be safely returned within 72 hours at their request. However,
Standefor and AFG did not use investor funds to cure defaults on any
residential properties, and investors' requests for return of their
investments were ignored.
Standefor used more than $1.9 million
of investor funds for personal expenses, such as her lavish wedding and
honeymoon, cars, jewelry, tickets to entertainment events and home
renovations.
This case was investigated by the
Federal Bureau of Investigation. In conjunction with the indictment
against Standefor, the U.S. Securities and Exchange Commission filed a
civil action against Standefor and AFG. The SEC obtained a default
against Standefor and AFG on September 18, 2008.
CONTACT:
Assistant U.S. Attorney Stephanie Yonekura-McCaffrey
Executive Assistant United States Attorney
(213) 894-1092
Release No. 09-004
If you think this isn’t
happening in your community, think again. Foreclosure/shortsale rescue
and affinity frauds are becoming increasingly popular in this market.
Be aware. Beware.
Realtors… We’re
part of the solution, not part of the problem. Make it so.
Gene
Wunderlich - Selling Southwest California Homes including
Temecula, Murrieta & The Southern California Wine Country
Remember, Don't wait to buy real
estate - Buy real estate and wait.
' $18 Million Ponzi /
Affinity Schemer Gets 12+ Years'
The
opinions in this commentary are strictly Gene Wunderlich's personal
opinions. While any reasonable and/or rational indivdual should agree
wholeheartedly, the opinons reflected herein may not necessarily be
those of SRCAR/GADBLOG,
ActiveRain, Coldwell Banker Residential
Brokerage, The Valley Business Journal or any local or state government
or other mental institution.
;)
;)
;)
Nice... and you are certainly right about:
"If you think this isn't happening in your community, think again. Foreclosure/shortsale rescue and affinity frauds are becoming increasingly popular in this market. Be aware. Beware."