The Sheriff's Blogger

GANG MEMBER CONVICTED OF ASSAULTING AND ROBBING MOTHER, DAUGHTER, AND GRANDMOTHER DURING HOME INVASION USING STOLEN KEY FROM UNDER WELCOME MAT

November 25, 2009

Orange County District Attorney's Office

WESTMINSTER - A Santa Ana criminal street gang member was convicted late yesterday of entering a home using a key stolen from under the welcome mat and robbing a mother, daughter, and grandmother at gunpoint after duct taping two to chairs and assaulting them with a firearm. Carlos Alberto Martinez, 26, Santa Ana, was found guilty by a jury Nov. 24, 2009, of three felony counts of first degree robbery, two felony counts of false imprisonment by violence, and one felony count each of false imprisonment by violence of an elder, first degree residential burglary, aggravated assault, assault with a firearm, elder abuse, street terrorism, and sentencing enhancements and allegations for criminal street gang activity, causing great bodily injury, and the personal use of a firearm. He has a prior strike conviction from 2000 for robbery. Martinez faces a maximum sentence of two life terms in state prison at his sentencing on Dec. 18, 2009, at 8:30 a.m. in Department W-13, West Justice Center, Westminster.

At approximately 5:45 a.m. on Dec. 18, 2007, Martinez and an unidentified accomplice entered a Santa Ana home using a key, which one of the defendants had stolen a few days prior after seeing Jane Doe #3, an 78-year-old grandmother, hide it under the front door mat. Wearing ski masks and armed with firearms, the defendants entered the kitchen and attacked Jane Doe #3 and her 54-year-old daughter, Jane Doe #1. Martinez and his accomplice duct taped the two victims to chairs by binding their wrists, ankles, bodies, and faces.

One of the defendants went into a bathroom, where 17-year-old Jane Doe #2 was showering. He ordered her at gunpoint to get out of the shower and forced her into the kitchen, where her mother and grandmother were being held.

As the three victims screamed in terror, the two defendants repeatedly hit Jane Doe #1 and Jane Doe #3 in the face with their firearms as they demanded cash and jewelry. Martinez and his accomplice stole $64 in cash and $150 in jewelry items and then fled the scene on foot. A neighbor testified during the trial that she called 9-1-1 after being awoken by the sound of the victims screaming.

The victims were transported to the hospital to be treated for their injuries. Jane Doe #3 was hospitalized for several days and continues to suffer from chronic headaches and vision problems as a result of the attack. Evidence was collected from the scene of the crime, including DNA from an interior door handle.

In April 2008, Martinez was convicted in an unrelated gang case for street terrorism and the unlawful taking of a vehicle in Orange County. He was sentenced to four years in state prison. The defendant was ordered to submit his DNA as a result of the conviction.

In June 2008, the DNA collected from the home in Santa Ana was matched to Martinez's DNA from his April 2008 conviction. The defendant was transported from state prison to Orange County to face charges.

All three victims testified during the trial. Jane Doe #1 testified that she was unable to sleep and was traumatized for months after the attack. When shown a crime scene photograph of herself with duct tape still in her hair and a bloody, swollen lip for the first time, Jane Doe #1 was overcome with emotion and broke down in tears on the stand.

Senior Deputy District Attorney Paul Chrisopoulos of the TARGET Unit is prosecuting this case.

WHITE SUPREMACIST GANG MEMBER SENTENCED TO DEATH PENALTY FOR CONSPIRACY MURDER OF FELLOW GANG MEMBER WHO DIVULGED GANG SECRETS ON TV

November 23, 2009

Orange County District Attorney's Office

SANTA ANA - A white supremacist gang member was sentenced today to the death penalty for his involvement in the 2002 gang conspiracy murder of a fellow gang member who divulged gang secrets on television. Billy Joe Johnson, 46, was found guilty Oct. 14, 2009, of one felony count each of murder, conspiracy to commit murder, and accessory after the fact. The sentencing enhancements for criminal street gang activity, the vicarious discharge of a firearm by a gang member causing death, murder by lying in wait, and murder committed for a criminal street gang purpose were found true. Johnson has three prior strike convictions for a 1983 residential burglary, 1989 robbery, and for beating an inmate in prison in 1995. He is currently serving a sentence of 45 years to life in state prison for a 2006 conviction for a 2004 gang related murder. A jury recommended the death penalty Oct. 29, 2009.

Johnson was charged with this murder Aug. 23, 2007, after the conviction of two previously charged co-defendants. Co-defendants Michael Allen Lamb, 35, and Jacob Anthony Rump, 34, (Case #03CF0441) were convicted by a jury on July 10, 2007, of murder, conspiracy to commit murder, committing murder for the benefit of a criminal street gang, two counts of possession of a firearm by a violent felon, two counts of possession of a firearm by a felon, carrying a firearm as an active gang member, two counts of street terrorism, and the attempted murder of a peace officer. The jury also found true the special circumstance of murder committed for the benefit of a criminal street gang and sentencing enhancements for criminal street gang activity, the personal discharge of a firearm causing death, and vicarious discharge of a firearm causing death as a gang member. On Oct. 5, 2007, Rump was sentenced to the maximum sentence, as sought by the People, of life without the possibility of parole. On June 11, 2008, a jury recommended that Lamb receive the death penalty. Lamb was sentenced Aug. 22, 2008, to death.

The Murder of Scott Miller

In February 2001, Fox 11 News profiled a violent white supremacist criminal street gang, focusing on a pending criminal case against known leaders of the gang who were on trial for conspiracy to commit murder. Scott Miller, a founding member of the gang, was featured in the broadcast, offending fellow gang members who felt he was airing "dirty laundry." While Miller's voice and face were disguised, his tattoos were visible and made it possible for fellow gang members to identify him.

On March 8, 2002, Miller was at a party in Costa Mesa with other members of his white supremacist gang. Johnson lured Miller from the party under the guise of purchasing drugs in Anaheim with the understanding that they would return to the party later. Johnson drove an unsuspecting Miller to an Anaheim apartment complex with the expectation that Lamb and Rump would be waiting there to murder the victim. Lamb and Rump were waiting in an alley and executed Miller by shooting him in the back of the head at close range with a 9mm firearm.

On March 11, 2002, Lamb and Rump became involved in a police car chase in Anaheim. They tried to flee from police, jumped from the moving vehicle, and ran off into an apartment complex. As the officers attempted to close in on them, the defendants fired a shot at police officers. Lamb and Rump surrendered after the gun they were firing jammed. The gun used to shoot at the officers was the same 9mm that was used to murder Miller three days earlier.

The Trial Against Lamb and Rump

During the murder trial against Lamb and Rump, Johnson lied on the stand by testifying that he had been the shooter in the murder of Miller. He lied in order to make himself a "martyr" for his gang by attempting to keep Lamb and Rump out of prison. In order to testify, Johnson was brought to Orange County from state prison, where he is serving time for an unrelated 2004 gang murder, where he repeatedly hit a man in the head with a hammer.

The Penalty Phase Against Johnson

During the penalty phase of the jury trial against Johnson, the defendant admitted to committing two additional murders to which he had not been previously connected. Without giving the names of the victims, Johnson admitted that he had killed one additional man while out of custody and one inmate while in custody. The defendant claimed that he directed violence toward gang members, rapists, "rats", and drug dealers.

Johnson testified that his victims brought their murders upon themselves and when asked if he had anything to say to Miller's mother, Johnson replied, "Sorry for your luck."

Senior Deputy District Attorney Ebrahim Baytieh of the Homicide Unit prosecuted this case.

CHIEF FINANCIAL OFFICER FOR PROFESSIONAL SKATEBOARDER'S BUSINESSES CHARGED WITH EMBEZZLING $365,000 FROM TWO COMPANY ACCOUNTS

October 13, 2009

The Orange County District Attorney's Office

NEWPORT BEACH - The Chief Financial Officer (CFO) for a professional teenage skateboarder's businesses was arrested and charged today with embezzling more than $365,000 from the victim by fraudulently transferring funds to himself from two corporate accounts. Matthew Mercuro, 36, San Clemente, is charged with two felony counts of grand theft with sentencing enhancements for excessive taking over $200,000 and $65,000. If convicted, he faces a maximum sentence of six years and eight months in state prison. Mercuro is being held on $400,000 bail and must prove the money is from a legal and legitimate source before posting bond. The defendant is expected to be arraigned Tuesday, Nov. 17, 2009, at the Harbor Justice Center in Newport Beach. The time and Department are to be determined.

Between June 2008 and April 2009, Mercuro worked as CFO for companies owned by professional skateboarder Ryan Sheckler. The defendant is accused of having access to the accounts of the two businesses, Ryan Sheckler Rips LLC and Sheckler Merch 2 LLC. He is accused of embezzling over $365,000 from these companies by transferring money from the corporate accounts into personal accounts and the account of his wife and a friend.

The theft was discovered when the suspicious transfers were noticed during a review of the companies' finances. Mercuro was arrested today by the Huntington Beach Police Department, who investigated this case, at his business in San Clemente.

The investigation is ongoing. Anyone with additional information or who believes they have been a victim is encouraged to contact Huntington Beach Detective Mark Garcia at (714)960-8848 or Supervising District Attorney Investigator Ron Frazier (714)347-8691.

Deputy District Attorney Brian Mulherin of the White Collar Crime Team is prosecuting this case.

SELF-DEFENSE INSTRUCTOR SENTENCED TO THREE YEARS IN STATE PRISON FOR MOLESTING 4-YEAR-OLD GIRL WHILE ALONE IN STUDIO

November 13, 2009

Orange County District Attorney's Office

NEWPORT BEACH - An instructor and co-owner of a Costa Mesa self-defense studio was convicted today of molesting a 4-year-old girl while she was a student at his studio. John Patrick Harison, 62, Anaheim, pleaded guilty to the court to one felony count of lewd acts on a child with a sentencing enhancement for substantial sexual conduct on a child. He was sentenced to three years in state prison and ordered to register as a sex offender. Harison also has a pending child pornography federal case with the U.S. Attorney's Office.

On Jan. 19, 2009, Harison sexually assaulted 4-year-old Jane Doe in a secluded area of his studio while he was alone with the victim, who was supposed to be receiving self-defense instruction. The defendant laid down next to the victim and fondled her by touching her groin region over her clothing. Jane Doe told her mother about the molest approximately one week later. Jane Doe's mother contacted the police.

At the time of the child molest, Harison was a co-owner and instructor at United Studios of Self Defense at 2675 Irvine Ave., Suite G, in Costa Mesa.

During the sentencing today, Jane Doe's father presented a victim impact statement in which he explained that Harison is a threat to other innocent children and deserves to go to prison. He explained, "My wife and I thought we were improving our children, giving them self confidence and giving them a skill to protect themselves from harm. How wrong we were. Little did we know that we were delivering our daughter to a child molester."

Deputy District Attorney Tony Ferrentino of the Sexual Assault Unit prosecuted this case.

FORMER CARETAKER TO BE ARRAIGNED FOR STEALING OVER $100,000 FROM DEVELOPMENTALLY DISABLED ADULTS

November 17, 2009

SANTA ANA - A former caretaker for developmentally disabled adults will be arraigned Thursday for stealing over $100,000 from her clients by writing checks from their accounts. Shandie Marie Lacsamana Rosete, 33, Placentia, is charged with 14 felony counts of caretaker theft from a dependent adult and sentencing enhancements and allegations for aggravated white collar crime over $100,000, loss over $100,000, and property damage over $50,000. She faces a maximum sentence of 19 years in state prison if convicted. Rosete is scheduled to be arraigned Thursday, Nov. 19, 2009, at 8:00 a.m. in Department C-5, Central Justice Center, Santa Ana.

Between January 2004 and December 2007, Rosete is accused of working as a caretaker for Project Independence, an Orange County non-profit that provides employment and independent living services to developmentally disabled adults. The defendant is accused of being entrusted to assist her adult clients with managing their money. Without the knowledge or consent of the victims, Rosete is accused of writing 663 checks to herself from the bank accounts of 14 developmentally disabled adults. She is accused of stealing over $100,000 from the victims.

The Anaheim and Garden Grove Police Departments began investigating the theft after a relative complained to Project Independence that someone was stealing from his developmentally disabled relative.

Rosete was held to answer to the charges at a preliminary hearing on Nov. 4, 2009.

Deputy District Attorney Sean O'Brien of the White Collar Crime Team is prosecuting this case.

INDICTED MARINE FACES MURDER TRIAL FOR KILLING DOCTOR IN HIGH-SPEED DRUNKEN DRIVING CRASH

November 19, 2009

The Orange County District Attorney's Office

SANTA ANA - A driver under the influence of alcohol faces trial today for killing a radiologist and injuring the doctor's wife in a high-speed crash after leaving Marine Corps Base Camp Pendleton (Camp Pendleton), where he was stationed. Lance Corporal Elijah Leigh Ferguson, 22, Santa Ana, was indicted March 18, 2009, on one felony count of murder, one felony count of driving under the influence causing injury, and one felony count of driving with a blood alcohol level of .08 percent or more causing injury. He faces a maximum sentence of 18 years to life in state prison if convicted. Opening statements are expected to begin this morning, Thursday, Nov. 19, 2009, at 9:00 a.m. in Department C-52, Central Justice Center, Santa Ana.

Prior to being released from duty for the weekend on Feb. 22, 2008, Ferguson is accused of participating in a mandatory standard safety briefing at camp Pendleton. The briefing covered the dangers of drinking alcohol and driving, and the instructors told the attending Marines that they would likely kill another person if they were to crash while driving intoxicated.

Sometime between 1:00 p.m. and 3:00 p.m., Ferguson is accused of drinking alcoholic beverages at Camp Pendleton after being released for the weekend. The defendant is accused of drinking for several hours and insisting that he was going to drive home to Santa Ana before passing out at approximately 7:00 p.m. in the barracks of another Marine due to intoxication. Fellow Marines, who recognized that Ferguson was intoxicated, went to get another lance corporal for fear that the defendant would attempt to drive when he woke up. While the defendant was passed out, the other lance corporal removed the car keys from the defendant's pants pocket.

When Ferguson woke up, he is accused of demanding his keys and becoming belligerent including throwing trash on the ground from outside trash cans and breaking his cell phone against a wall. Several other Marines planned to drive Ferguson home to Santa Ana, but later arranged for the defendant to stay in the Camp Pendleton barracks.

At approximately 11:00 p.m., Ferguson is accused of asking a lower ranking Marine, a private first class, to get his keys and drive him home. When the private first class returned with Ferguson's keys, the defendant is accused of pulling rank and ordering the lower ranking Marine to give him the car keys.

At 11:53 p.m., Ferguson is accused of driving approximately 75 mph in a 50 mph zone heading eastbound on MacArthur Boulevard in Newport Beach. As he approached the intersection at Jamboree Road, Ferguson is accused of failing to hit his breaks or slow down and crashing his Dodge Caliber into the back of an Aston Martin, driven by 63-year-old Michael Sein, who was waiting at a red light. The victim's car spun out before coming to a stop. Michael Sein, a radiologist who lived with his wife, Grace Sein, in Newport Coast, was transported to Hoag Hospital, where he died approximately 30 minutes later due to severe blunt trauma to the head. Grace Sein, who was riding in the passenger seat, was transported to Western Medical Center and treated for bleeding in her brain and back injuries.

Ferguson was also transported to Western Medical Center to be treated for a broken ankle. Approximately one hour after being admitted into the hospital, Ferguson was contacted by officers from the Newport Beach Police Department, who observed objective signs of intoxication. The defendant is accused of omitting an odor of alcoholic beverage, slurring his speech, and having red and watery eyes. Approximately three hours after the crash, Ferguson is accused of having a blood alcohol level of .12 percent.

Deputy District Attorney Susan Price of the Homicide Unit is prosecuting this case.

FORMER EXECUTIVE AT COLORADO HOME BUILDING COMPANY ADMITS ROLE IN $16 MILLION ‘BUILDER BAILOUT’ SCHEME

Southern California Loan Officer, Real Estate Agent Linked to Scheme in Which Unqualified Buyers Obtained Mortgages for Luxury Homes

US Department of Justice

LOS ANGELES – The former director of sales for a Colorado real estate company that built luxury homes throughout the state agreed in court papers filed today to plead guilty to a federal conspiracy charge, admitting that he and other company officials participated in a $16 million “builder bailout” scheme in which buyers of $1 million-plus homes were paid kickbacks if they purchased homes from the company.

    Benjamin Serrano, 47, who until recently lived in Parker, Colorado, was charged in a criminal information filed this morning. In a related plea agreement also filed this morning in United States District Court, Serrano agreed to plead guilty to one count of conspiracy.

    In the court documents, Serrano admits his role in a scheme to bring needed revenue to his company and admits working with Kristin A. Clark, a licensed real estate agent in Los Angeles, and Bradley Bishop, a former loan officer at Washington Mutual Bank and, later, Bank of America. Both Clarke and Bishop previously pleaded guilty to bank fraud charges.

    In his plea agreement, Serrano admits to participating in a conspiracy with Clark and Bishop, as well as others at the company, to defraud Bank of America, Wells Fargo Bank, Washington Mutual Bank and other federally insured financial institutions. In the scheme, people associated with the company agreed to pay illegal kickbacks to individuals who agreed to buy homes in one of the company’s five developments.

    To conceal the illegal kickbacks from the banks, Serrano and others would record bogus second deeds of trust on the company's properties, according to papers filed in court. The second deeds of trust were recorded in favor of shell corporations controlled by the company for an amount equal to the kickback. Once someone agreed to buy a home, Bishop would tell Clark what information needed to be listed on the buyer’s loan application in order for him or her to qualify for a home loan at Bank of America, and Clark would use that information to obtain the bogus documentation required by the bank. When the properties were sold and loans funded, the banks would use part of the loan proceeds to pay off the bogus second deeds of trust recorded against the property. That money, which was paid to the company's shell corporations, was then used to pay the kickbacks to the buyers. The kickbacks typically ranged between 20 percent and 23 percent of the homes' sales price, which all sold for more than $1 million. 

    In one instance discussed in Serrano’s plea agreement, a buyer agreed to purchase a home in Parker, Colorado for $1,277,500. In exchange, the company agreed to pay the buyer a kickback of approximately $269,000 out of the loan proceeds. Serrano and others at the company agreed to this sale knowing that the buyer had used a false identity to obtain a home loan from Wells Fargo. In fact, Serrano admitted in the plea agreement, he paid for the buyer to fly to Los Angeles to obtain a better fake identification. FBI agents in Colorado followed up on this sale and discovered that the buyer later defaulted on the loan and the property was sold for $533,000, resulting in a loss of $694,500 to the bank.

    Special Agents with the FBI in Los Angeles first began investigating Clark, Bishop, Serrano and others involved in the scheme in April 2008 after a woman contacted Bank of America to report that her identity had been stolen and used to apply for a $1 million home loan for property in Colorado. Bishop and Clark later pleaded guilty to their involvement in the conspiracy and agreed to cooperate with the government in its on-going investigation into Serrano and others at the company. Bishop and Clarke each pleaded guilty earlier this year pursuant to plea agreements that have been partially unsealed. According to Bishop's plea agreement, between January 2008 and April 2008 – a time when the real estate market was in sharp decline – he processed 11 fraudulent loans worth $12,571,366 that were used to buy properties built by Serrano's former company. According to Clark's plea agreement, she prepared the fraudulent loan applications and submitted fictitious tax returns, W-2s and payroll stubs in support of the fraudulent loans. Clark further admitted that she used her two real estate companies, K&K Investments and Cardinal and Gold Investments, to secretly funnel kickbacks to the buyers.

    Serrano agreed to plead guilty to one count of conspiracy, which carries a statutory maximum penalty of five years in federal prison. Serrano is scheduled to make his initial court appearance in United States District Court on December 14.

    Clark pleaded guilty in January to 13 counts of bank fraud, which each carry a statutory maximum penalty of 30 years in federal prison. Bishop pleaded guilty in September to 11 counts of bank fraud. Clark and Bishop pleaded guilty before United States District Judge Christina A. Snyder.

    The cases against Serrano, Clark and Bishop are part of an ongoing investigation being conducted by the Federal Bureau of Investigation’s Los Angeles and Colorado Field Offices.

Brown Recovers $1.4 Billion for Wells Fargo Investors in Landmark Settlement

San Francisco- Attorney General Edmund G. Brown Jr. today announced a landmark $1.4 billion settlement with three Wells Fargo affiliates to pay back investors, charities and small businesses that purchased auction-rate securities based on "misleading advice."

"Wells Fargo convinced thousands of investors to purchase auction-rate securities with promises of robust returns and liquidity, but when the market collapsed, investors were left out in the cold," Brown said. "Based on misleading advice, investors bought these risky securities. Now, retail investors and small businesses are finally getting their money back."

Under today's settlement, Wells Fargo will buy back $1.4 billion in non-liquid auction-rate securities from thousands of retail customers, charities, and small businesses nationwide, including about $700 million to California investors. Wells Fargo will also pay legal costs and future monitoring expenses incurred by Brown's office.

In February 2008, nationwide auction markets froze, and investors have been unable to sell their securities.

Earlier this year, Brown filed the suit against three Wells Fargo affiliates-Wells Fargo Investments, LLC; Wells Fargo Brokerage Services, LLC; and Wells Fargo Institutional Securities, LLC-for violating California's Securities Law. Brown's suit contended that Wells Fargo routinely misrepresented, marketed and sold auction-rate securities as safe, liquid and cash-like investments, omitting material facts. The company was also charged with failing to supervise and train its sales agents and selling unsuitable investments.

The lawsuit contended that Wells Fargo ignored clear industry and internal warnings about risk and previous auction failure. In March 2005, the Securities and Exchange Commission (SEC), the "Big 4" accounting firms, and the Financial Accounting Standards Board all determined that auction-rate securities should not be considered "cash equivalents."

Despite these warnings, Wells Fargo continued to aggressively sell and falsely market auction-rate securities as safe, liquid, cash-like investments until the nationwide auction markets froze in early 2008.

In marketing and selling these investments, Wells Fargo failed to inform investors about how auction-rate securities or the auction process worked, as well as the risks and consequences of auction failure.

FORMER CPA AND TRUSTEE SENTENCED TO PRISON FOR STEALING OVER $500,000 FROM TRUST FUNDS OF SIBLINGS TO SPEND ON DOLL COLLECTION

November 17, 2009

The Orange County District Attorney's Office

SANTA ANA - A former Certified Public Accountant (CPA) and trustee was sentenced yesterday for stealing over $500,000 from the trust funds of a brother and sister and spending the stolen money on a doll collection. Margot Jean Strawn, 58, Laguna Hills, pleaded guilty to the court to two felony counts of grand theft with sentencing enhancements for aggravated white collar crime over $500,000 and property damage over $150,000 and $50,000. Strawn was sentenced to four years in state prison and was ordered to pay over $500,000 in restitution to the victims. The defendant paid $95,000 in restitution at her sentencing yesterday.

In 1995, Strawn, a CPA, was hired by the Pellissier family as the Successor Trustee to manage the trust funds of sister and brother Michelle and Edmund Pellissier. The defendant was responsible for managing the trust funds by providing accounting services, filing tax returns, and distributing the money to the accounts. Between May 31, 2001, and Jan. 19, 2007, Strawn stole over $500,000 from both trusts by writing herself checks from the accounts and depositing them into her personal bank account. The defendant failed to file 2002, 2003, and 2004 tax returns for Michelle Pellissier's trust. On March 1, 2001, Strawn's CPA license expired. She continued performing accounting services for the victims. The defendant's license was revoked on March 25, 2005, and she never informed the victims of her status.

In early March 2007, the Internal Revenue Service (IRS) notified Michelle Pellissier of a trust tax error. The defendant assured the victim that she would handle the matter. On April 29, 2007, Michelle Pellissier contacted the IRS and discovered no tax returns for the trust had been filed from 2001 to 2004. On May 29, 2007, Michelle Pellissier checked the balance of one account linked to the trust totaling .95 cents, which should have been over $100,000. Michelle informed her brother after checking all of her accounts linked to the trust and found that the defendant had stolen over $400,000. Edmund Pellissier checked his trust accounts and found that the defendant had stolen over $100,000. Michelle and Edmund Pellissier immediately reported the theft to the Orange County Sheriff's Department, who investigated this case.

Anyone with additional information or who believes they have been a victim is encouraged to contact Supervising District Attorney Investigator Ron Frazier at (714)347-8691. Deputy District Attorney Jan Christie of the Major Fraud Unit prosecuted this case.

FORMER NFL PLAYER SENTENCED TO NEARLY FIVE YEARS IN FRAUD SCHEME THAT COST VICTIMS OVER $5 MILLION

US Department of Justice

    SANTA ANA, California – A former high school and college football star who briefly played with the Tennessee Titans was sentenced this afternoon to 57 months in federal prison after pleading guilty to fraud charges related to a $5 million Ponzi scheme.

    Reed Kyle Diehl, 31, of Coto de Caza, was sentenced by United States District Judge David O. Carter, who noted the “extraordinary” harm caused by Diehl’s scheme.

    Diehl pleaded guilty in July to three counts of wire fraud and one count of money laundering, admitting that he bilked investors with promises of high rates of returns on investments in loan programs, including multimillion dollar condominium projects in Mexico. During the course of his scheme, Diehl falsely represented himself to potential clients as a banker who made “hard money loans” to businesses or individuals. Diehl also admitted that he fraudulently collected deposits for lines of credit for people who desired financing for construction and development projects in Mexico.

    In relation to the “hard money loans,” Diehl told investors that he would pool their funds and make secured loans to individuals or businesses that had short-term cash needs. Instead of using investor funds to make loans, he used investors’ money to repay earlier investors and to fund his lifestyle.

    In relation to the second part of his scheme, Diehl told victims involved in construction projects in Mexico that he could secure multimillion dollar lines of credit. Diehl told one victim that it would cost $1.175 million to secure a $24 million loan and that the deposit would be used as collateral for the line of credit. The victim eventually paid Diehl $2.5 million, money that Diehl used to pay, among others things, other people who had made investments with Diehl. None of the victims ever obtained a line of credit through Diehl.

    One of the victims who lost money met Diehl while playing high school football at a time when Diehl was a coach at the school. In late 2007, when the victim was a college student, he invested $15,000 with Diehl.

    Diehl admitted in court that he caused losses of just over $5 million.

    Diehl was initially charged and arrested in this case in March 2008. After being freed on bond, Diehl's bond was revoked in January after he attempted to enter into a real estate transaction for a $3.5 million house using a false name and someone else's social security number.

    The investigation into Diehl was conducted by the Federal Bureau of Investigation.