California Man Pleads Guilty in Oregon in $18 Million Ponzi Scheme
March 31, 2011
Total Loss:
$18 Million
Today, Louis J Borstelmann, 68, of Thousand Oaks, California, pleaded guilty to mail fraud and money laundering in connection with a Ponzi scheme that reached Florence, Oregon. The d efendant admitted to soliciting approximately 100 individuals, a majority of whom are residents of Florence, Oregon, to invest in real estate through his company, Sunburst Associates, Inc ., a California corporation, bilking them out of more than $18 million. The defendant claimed to offer hard-money loans through his company that were secured by real estate deeds of trust. To entice individuals to invest, the defendant falsely promised high rates of return and a security interest in the property allegedly pledged to secure the investment.
Source:
7th Space
Posted in:
Collusive Networks