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Calif. Fund Chief Accused of Bilking 1000s
California Investment Firm Chief Accused of Bilking Thousands of Clients Out of $814 Million
The Associated Press
SACRAMENTO, Calif. Jan. 20 ? Federal prosecutors unsealed a fraud charge and arrest warrant Tuesday against the owner of a Southern California investment firm accused of bilking thousands of clients nationwide of $814 million.
The FBI has been unable to find James P. Lewis Jr. to arrest him on a single mail fraud charge filed a week ago, and now is asking for the public's help in locating him.
Lewis, 57, of Laguna Niguel, operated Financial Advisory Consultants, which was supposed to have $814 million on hand for its clients when the FBI raided its Orange County office Dec. 22. Its bank accounts held about $2.3 million.
The accounts have been frozen by federal authorities.
Lewis' attorney withdrew last week due to a conflict of interest, and no new attorney has registered as Lewis' representative.
The FBI and Securities and Exchange Commission allege Lewis fabricated more than $730 million in investor earnings as part of a 20-year Ponzi scheme in which early investors are paid off with money from later clients, who end up with nothing.
Even accounting for the fictitious funds, Lewis still should have $75 million more than investigators can find, the SEC said.
The FBI alleges Lewis also used clients' money to buy luxury items. The FBI has seized five automobiles, including two Mercedes, and is trying to seize other property, FBI spokeswoman Laura Bosley said.
If Lewis is arrested, federal prosecutors could pursue additional charges. The maximum penalty for mail fraud is generally five years in prison.
At the time he was shut down, Lewis had 3,290 investors across the United States. Over the last 10 years, he handled more than 5,200 accounts.
Calif. Fund Chief Accused of Bilking 1000s
California Investment Firm Chief Accused of Bilking Thousands of Clients Out of $814 Million
The Associated Press
SACRAMENTO, Calif. Jan. 20 ? Federal prosecutors unsealed a fraud charge and arrest warrant Tuesday against the owner of a Southern California investment firm accused of bilking thousands of clients nationwide of $814 million.
The FBI has been unable to find James P. Lewis Jr. to arrest him on a single mail fraud charge filed a week ago, and now is asking for the public's help in locating him.
Lewis, 57, of Laguna Niguel, operated Financial Advisory Consultants, which was supposed to have $814 million on hand for its clients when the FBI raided its Orange County office Dec. 22. Its bank accounts held about $2.3 million.
The accounts have been frozen by federal authorities.
Lewis' attorney withdrew last week due to a conflict of interest, and no new attorney has registered as Lewis' representative.
The FBI and Securities and Exchange Commission allege Lewis fabricated more than $730 million in investor earnings as part of a 20-year Ponzi scheme in which early investors are paid off with money from later clients, who end up with nothing.
Even accounting for the fictitious funds, Lewis still should have $75 million more than investigators can find, the SEC said.
The FBI alleges Lewis also used clients' money to buy luxury items. The FBI has seized five automobiles, including two Mercedes, and is trying to seize other property, FBI spokeswoman Laura Bosley said.
If Lewis is arrested, federal prosecutors could pursue additional charges. The maximum penalty for mail fraud is generally five years in prison.
At the time he was shut down, Lewis had 3,290 investors across the United States. Over the last 10 years, he handled more than 5,200 accounts.
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