Downey man accused of operating Ponzi scheme to plead guilty
- Share via
A Downey man accused of operating a Ponzi scheme that targeted Spanish speakers has agreed to plead guilty to federal criminal charges, a spokesman for the U.S. attorney’s office said Monday.
Juan Rangel, 46, agreed Friday to plead guilty to charges of mail fraud and money laundering. Federal prosecutors said they would ask a judge to sentence Rangel to 15 years in federal prison.
Rangel used advertisements in Spanish-language media to recruit investors to his Commerce company, Financial Plus Investments. He told clients that he would use the money to make loans and invest in real estate, promising investors 60% annual returns. In his plea agreement, Rangel admitted that he made no such investments.
Instead, prosecutors said, Rangel used the money to make purported “interest” payments to early investors and on personal expenses, including a $3-million house and a Lamborghini sports car.
Rangel also acknowledged in his plea agreement that he and others operated a mortgage fraud scheme that targeted Latino homeowners at risk of losing their homes. Instead of helping the homeowners avoid foreclosure, he took title to the homes and used loans to drain them of their equity, prosecutors said.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
