PAIR CHARGED IN FRAUD SCHEME.Byline: SUSAN ABRAM Staff Writer Two Westlake Village men defrauded dozens of victims of a total of $68 million, then used the money to purchase sports cars, race boats and a $447,000 Ulysses Nardine Genghis Khan Genghis Khan: see Jenghiz Khan. Genghis Khan or Chinggis Khan orig. Temüjin (born 1162, near Lake Baikal, Mongolia—died Aug. model wristwatch, federal investigators said Tuesday. Robert Alvin Coberly and Curtis Devin Somoza, both 38, were arrested Tuesday at their homes on suspicion of operating a classic Ponzi scheme A fraudulent investment plan in which the investments of later investors are used to pay earlier investors, giving the appearance that the investments of the initial participants dramatically increase in value in a short amount of time. : using money from new investors to pay off older ones. Up to 70 victims were involved, agents with the Federal Bureau of Investigation Federal Bureau of Investigation (FBI), division of the U.S. Dept. of Justice charged with investigating all violations of federal laws except those assigned to some other federal agency. said. ``This was all ages and all kinds of victims,'' said Steve Goldman, supervisory special agent for the FBI. ``This is large for a fraud case.'' Investigators said the men solicited investors beginning in 2003 to purchase pools of life insurance policies through their company, Persistence Capital, on behalf of a church-based organization in South Los Angeles South Los Angeles is the official name for a large geographic and cultural area lying to the southwest and southeast of downtown Los Angeles, California. The area was formerly called South Central Los Angeles, and is still sometimes called South Central. . Clients were promised an annual return of 25 percent of their investment. While about $4 million was used to purchase two pools of life insurance, the other $64 million was spent ``to further their lavish lifestyles,'' including a 2003 Aston Martin Aston Martin Lagonda Limited is a British manufacturer of luxury performance cars, whose headquarters are at Gaydon, Warwickshire, England. The company name is derived from the Aston Clinton hill climb and one of the company's founders, Lionel Martin. automobile for $250,000; a 2003 Ferrari for $240,000, a 44-foot-long 2005 MTI MTI Ministry of Trade and Industry (Singapore) MTI Metal Treating Institute MTI Moving Target Indicator (radar) MTI Magyar Távirati Iroda (news agency in Budapest, Hungary) Supercat race boat for $290,000 and the Ghengis Khan watch, said Goldman. Before Tuesday's arrest, the two men had settled a civil case with the Securities and Exchange Commission on similar charges. But instead of life insurance policies, Coberly and Somoza sold $6.7 million worth of fraudulent ``prime-bank'' note investments. As part of the civil suit, the men paid back each investment with interest. Coberly and Somoza both face charges of mail and wire fraud; convictions carry up to 20 years in federal prison for each charge. Samoza was being held without bail Tuesday, while Coberly's bail will be determined Thursday. Their arraignment A criminal proceeding at which the defendant is officially called before a court of competent jurisdiction, informed of the offense charged in the complaint, information, indictment, or other charging document, and asked to enter a plea of guilty, not guilty, or as otherwise permitted is expected to be held June 19 in federal court. susan.abram(at)dailynews.com (818) 713-3664 |
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