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Man charged again after state agencies fail to warn investors

On Behalf of | Sep 20, 2019 | Firm News

At the law firm of Herbert Weston & Tanya Weston, Criminal Lawyers, in Vista, California, we understand how an investigation may alter the outcome of your life and future plans. Sometimes, however, state officials might also fail to disclose material information to the public that they may have uncovered about an individual’s alleged wrongdoing, even when they may be required to do so.

In one such case, California state agencies recently investigated the allegations of wrongdoing by a San Diego County resident. As reported by NBC 7 San Diego, previous investigators failed to disclose to investors that the man had been convicted earlier when he was charged in 2012 with felony fraud. At the end of the earlier investigation, the accused individual accepted a plea bargain and admitted that he stole $84,000 from a youth group’s baseball little league fund. He was sentenced to nine days of community service without any jail time.

The earlier investigative agencies failed to adequately warn potential investors of the accused’s “complete lack of integrity” and “lack of true remorse” as required by the California Department of Insurance. After the community service sentencing for the 2012 charge, investment authorities revoked the defendant’s investment sales license and issued a simple news release. It did not, however, contain the required advisory warning language.

After losing his license, the San Diego County man continued to solicit investors who provided him with funds even though information published online revealed his 2012 conviction. Seven years later, he is being charged once again, this time by the Securities and Exchange Commission. The agency is accusing him of running a $7 million Ponzi scheme.

Our page on what you may expect while under investigation provides more information about your civil rights during the evidence gathering process.