San Jose Man To Get Seven Years For Pocketing $1.6M From Investors While Purporting To Operate Foreclosure Rescue Business

In Santa Clara County, California, the San Jose Mercury News reports:

• A 34-year-old San Jose man pleaded guilty to nine felony charges for running an illegal investment scheme from 2006 to 2009, according to the Santa Clara County District Attorney's Office. Reyes Alcaraz operated Safe Recovery, which promised high rates of return for investing money to rescue residential properties from foreclosure. Many of the investors were Spanish-speaking immigrants.

• He defaulted on many of the contracts, but continued to solicit new investors, writing bad checks to some of them. Prosecutors say 40 investors lost a total of about $1.6 million in the scheme. Alcaraz pleaded guilty Thursday to one count of grant theft, one count of selling an unqualified security, one county of misrepresentation or omission of a material fact in the sale of a security, five counts of insufficient fund checks, and one count of money laundering. Alcaraz is scheduled to be sentenced Aug. 3 to seven years in state prison.

Source: San Jose man pleads guilty in foreclosure-rescue scam.