California Attorney General Rob Bonta announced the arrest and arraignment of two individuals accused of defrauding victims out of more than $1 million. The alleged scheme involved investments in pizza restaurant franchises or stock options. The defendants face charges in San Diego Superior Court, including franchise fraud, security fraud, a fraudulent securities scheme, grand theft, and aggravated white-collar crimes.
Attorney General Bonta stated, “The white-collar crime scheme perpetrated by these defendants stole money from Californians who were attempting to become entrepreneurs or make investments into business. At the California Department of Justice, we won’t stand idly by if individuals cause financial harm to hardworking Californians to enrich themselves.”
The scheme ran from 2020 to 2023 and targeted individuals with little investment experience. Victims included seniors and military veterans, with financial commitments ranging from $5,000 to $150,000. The defendants allegedly ceased communication with victims after receiving their funds. One defendant also took loans meant for small businesses post-pandemic totaling $287,000 without repayment.
The arrests followed an investigation by the California Department of Justice’s Special Prosecution Section and White Collar Investigations Team, with assistance from Osceola County Sheriff’s Office and United States Marshals Service.
It is emphasized that charges in a criminal complaint must be proven in court and all defendants are presumed innocent until proven guilty.
