Attorney General Bonta Announces Arraignment in Fraudulent Real Estate Investment Scheme | State of California – Department of Justice

OAKLAND – California Attorney General Rob Bonta announced today the charges and charges against the owner of Downkicker, Inc. for allegedly running a fraudulent real estate investment program. Seven victims lost over $ 1.3 million as a result of the alleged 13 months of fraud. On October 29, 2021, a nationwide special grand jury indicted the defendant on 38 cases, including one case of operating a fraudulent securities system, 19 cases of securities fraud, 17 cases of large theft and one case of elder abuse. He was tried in the San Diego County Superior Court earlier today.

“Investing can carry a variety of risks, but being defrauded by unskilled individuals shouldn’t be one of them,” said Attorney General Bonta. “Today we thank the DOJ’s Bureau of Investigation and Department of Financial Protection and Innovation and the Eastern District of California and Santa Clara District Attorney’s Office for their support and continued partnership.”

An investigation by the California Department of Financial Protection and Innovation found that the defendant allegedly through Downkicker had offered his private clients the opportunity to invest in various real estate projects. During this time he presented himself as a successful investor and contractor, but failed to disclose to his victims facts to which his investors were entitled – including the fact that both he and the companies he led had gone bankrupt had been successfully sued several times that both the Internal Revenue Service and the California Franchise Tax Board had liens on him for non-payment of taxes and that his license as a contractor had expired in 2008.

In many cases, instead of investing his victims ‘funds under the terms of the investment contracts, the defendant took his victims’ money and left the projects. The defendant also abandoned several projects, which resulted in the foreclosure of these properties. As a result of his alleged fraud, the defendant’s seven victims lost $ 1,363,809.80.

The DOJ’s Special Prosecutions Section will handle the indictment.

It is important to note that a criminal charge contains charges that are only allegations against a person. The accused is presumed innocent until proven guilty.

A copy of the indictment can be found here.