A California woman who promised investors up to 20 percent returns on their money has pleaded guilty in a nearly $7 million real estate and small business Ponzi scheme.
Guadalupe Valencia pleaded guilty Monday to six federal fraud charges claiming she bilked more than 150 victims who invested in her Downey-based Real Estate & Loan Consultants and R.E. Equity Group investment pools.
The 46-year-old West Covina woman, who was immediately taken into custody, faces 86 years in federal prison and fines totaling $1.5 million when she’s sentenced May 23.
From 2001 to 2009, prosecutors say Valencia promised investors high rates of interest from 8 percent to 20 percent in as little as 45 days.
If it sounds too good to be true, it probably is! Always check with your accountant, attorney, real estate professional and other professionals before giving any money over to someone who professes to help you "get rich quick" or "solve your mortgage problems" if you pay upfront, or sign over your property deed to them.
It's up to you to report misbehavior of this type to your local regulatory board. It's easy, forms are online and you can remain anonymous. Working together we can get folks like Ms. Valencia on Santa's naughty list for a long, long time.
Your question of the day: Have you ever been promised something too good to be true?
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