CARLSBAD: Two men, Alan Espiritu, 35, and Cesar Moreno, 40, were arrested on Tuesday on November 3, 2009 for alleged grand theft and securities fraud. They pleaded not guilty to charges during an arraignment held on Thursday, November 5, 2009 in San Diego Superior Court.
They are accused of operating a fraudulent investment company, called Permex with offices located in Vista and Carlsbad. Their target clients were mostly non-English speaking Hispanics, 25 of which, have come forward so far to report net losses of a whopping $1.2 million combined. According to police, one of Espiritu and Moreno's tactics would be to befriend these victims on a personal level. They would often attend family functions, even weddings to gain their trust and then aggressively persuade the victims to invest money with Permex to fund non-existent projects such as, "building development, house-flipping, and commercial investments," with the promise of returns up to 25 percent.
The investigation began with a tip given to the Carlsbad police back in May 2008. They have currently mapped out a web of victims dating back to 2001 that spans throughout southern California. Specific counties affected have been Los Angeles and Riverside counties, as well as here locally in San Diego which specifically include Fallbrook, Valley Center, and Chula Vista. Carlsbad police spokeswoman, Lynn Diamond, further elaborated that in some the cases, these undocumented immigrants were advised to stop making payments on their home mortgages and use that money to invest with Permex. Many ended up losing their homes on top of the lost investments. Evidence also estimates that these victims lost between $10,000 and $200,000 a piece. Police do believe there are still additional victims that have yet to come forward.
Espiritu and Moreno each face several counts of grand theft as well as security fraud violations and are being held on bail of $1 million each. However, if convicted on the charge of grand theft, both men could serve up to one year in prison and/or a fine up to $10,000 per count. If found guilty of securities fraud, they could serve two, three, or five years in prison and/or fines up to $10 million per count.
Fraud and theft charges are very serious matters and can be utterly devastating if convicted. If you find yourself facing allegations of this nature, you need to act now. At Pro Law Partners, our attorneys have been helping clients contest criminal allegations and obtain superior results for several years. Our skilled three strike crimes attorneys have substantial court room experience and are fully prepared to undertake complex cases. We do everything possible to make sure that our clients receive the attention, resources, and dedicated legal counsel that they deserve.
Sources: San Diego Union Tribune
Coast News Group
