Home News Judge Hands Down Five-Year Prison Sentence to Disbarred Attorney Caught Running Fake Real Estate Investment Fund Including Santa Monica, Hermosa Beach, and Los Angeles Properties

Judge Hands Down Five-Year Prison Sentence to Disbarred Attorney Caught Running Fake Real Estate Investment Fund Including Santa Monica, Hermosa Beach, and Los Angeles Properties

by admin
0 comment

Prosecutors say defendant Derek Jones sold ownership of property he didn’t own

Disqualified California attorney DEREK Jones was sentenced to five and a half years in prison by U.S. District Judge Loretta A. Preska. Jones pleaded guilty to wire fraud charges for running a fraudulent investment fund involving real estate and venture capital firms that defrauded investors of more than $8.6 million from at least 2012 to 2019.

“When investors purchase shares in real estate funds or other investment funds, those investors must ensure that the people who promote and sell those investments treat them honestly and tell the truth about their investments. Today, disqualified attorney Derek Jones violated this right for a long period of time, selling his interest in the property he falsely claimed to own, He was accused of defrauding investors of millions of dollars.

Between 2012 and 2019, Jones invested in companies and funds he controlled, including BlueRidge, Living City, Atiswin, and Realize Holdings (a venture capital firm) to help victims. I cheated. Information on this matter can be found in indictments, court statements, and other publicly filed documents.

Jones has lied about real estate developments, including a “resort village” and an existing hotel he claims to control in Semirmoose Spit, Washington, a ranch in Colorado, and other properties in California, including Santa Monica. defrauded investors about Hermosa Beach, Los Angeles. In reality, Jones did not own or control these assets. Instead of using the investor’s money as promised, Jones diverted it for personal uses such as his children’s private school tuition.

As part of this scheme, Jones sent investors falsified documents, including falsified bank statements, fake financial statements and contractual agreements, forged land leases, and fictitious asset allocations. He also used the names of other individuals in email communications to convince investors that his business was viable.

In total, Jones defrauded investors of over $8.6 million. He was suspended and ultimately disqualified for knowingly misappropriating client money and misrepresenting it to courts, clients, and others.

You may also like