The former Irvine Planning Commissioner plead guilty to fraud. David R. Sparks and Irvine broker and former planning commissioner for the city of Irvine who was charged with running a Ponzi scheme that bilked $4.3 million from 34 friends. With friends like that ...! On Wednesday he plead guilty to felony interstate wire fraud.
Brokers that are so out of whack as Mr Sparks give all of us in real estate a bad name. The U.S. Attorney will recommend that Sparks receive no more than five years, three months, jail time.
The case evolved around Sparks transferred $500,000 from Westpoint Bank in Wisconsin to Commerce Bank in Fullerton and an additional 1 million from Johnson Bank in Wisconsin. He was claiming to buy and rehab foreclosed homes. He did not purchase any homes. He forged bank documents used nonexistent escrow companies, provided bogus status updates and falsely reported significant profits.
Overall this Broker just tried to lie his way through collection of moneys from his friends and kept it for himself.