KidCA
10-28-2010, 01:11 PM
http://www.vcstar.com/news/2010/oct/26/to-man-arrested-in-connection-with-ponzi-scheme/
Federal authorities arrested a Thousand Oaks man Tuesday for allegedly operating a Ponzi scheme that cheated investors out of more than $18 million.
Louis “Jim” Borstelmann, 68, was taken into custody by a.inline_topic:hover { background-color: #EAEAEA;}FBI (http://www.actuarialoutpost.com/news/topic/federal-bureau-of-investigation/) and Internal Revenue Service agents and charged with wire fraud, mail fraud and money laundering.
The FBI office in Portland and Oregon Division of Finance and Corporate Securities had been investigating Borstelmann for at least a year in connection with his business activities at Sunburst Associates Inc., which he operated for 30 years, the last few at 199 E. Thousand Oaks Blvd., Suite 106.
Borstelmann reportedly got people to invest in second mortgages he sold to homeowners, promising high rates of return and a security interest in the property allegedly pledged to secure the investment. Many of the investors are in Oregon and are over 65.
According to the indictment, Borstelmann spent the investors’ money on personal items, including a car and a home.
Borstelmann’s arrest occurred just after 6 a.m. at his house in Greenmeadow Estates in Thousand Oaks, according to his neighbor, Peggi Clemens, who watched it happen.
Clemens said three vehicles showed up with eight to 10 agents. They handcuffed Borstelmann, took him away, and had his 2005 Lexus RX330 towed. The vehicle is described in the indictment as forfeitable property.
Investors stopped hearing from Borstelmann after he sent them a letter in January 2009 that read:
“Dear investor, I regret I have to tell you that your investments with Sunburst have no value. The current crash of the housing market has wiped out any equity. I have no money or assets left and am $500,000 in debt. All I have left is my Social Security. Given the situation, I am closing Sunburst and will likely file bankruptcy.”
Stephanie McKenzie of Florence, Ore., invested $55,000 with Borstelmann and was glad to hear he was arrested Tuesday.
“It’s a great day,” she said. “None of us expect to get anything back, I’d just like to see him behind bars.”
Miles Weiss, senior deputy district attorney who oversees the Real Estate Fraud Unit in Ventura County, consulted with federal authorities in the early stages of the investigation. He was pleased to get word of the indictment.
“Our office alone received five distinct real estate fraud complaints related to this defendant and we’re glad to see them encompassed in the approximate 100 victims associated with this prosecution,” he said.
Borstelmann will be arraigned Nov. 8 before Judge Thomas Coffin in the U.S. District Court in Eugene, Ore.
Read more: http://www.vcstar.com/news/2010/oct/26/to-man-arrested-in-connection-with-ponzi-scheme/#ixzz13frT8FSG
- vcstar.com
What's funny is that this dbaggy guy would issue HOA citations to me for not moving my car over a 3-day weekend or leaving my garage door open overnight. He would cover and double park his Lexus, too, which just made you want to throw a paint can on it. What a satisfying read for me.
The other neighbor quoted in the article, Peggi, is a real crazy biznatch, but oddly entertaining at arms length. EDITED OUT
Federal authorities arrested a Thousand Oaks man Tuesday for allegedly operating a Ponzi scheme that cheated investors out of more than $18 million.
Louis “Jim” Borstelmann, 68, was taken into custody by a.inline_topic:hover { background-color: #EAEAEA;}FBI (http://www.actuarialoutpost.com/news/topic/federal-bureau-of-investigation/) and Internal Revenue Service agents and charged with wire fraud, mail fraud and money laundering.
The FBI office in Portland and Oregon Division of Finance and Corporate Securities had been investigating Borstelmann for at least a year in connection with his business activities at Sunburst Associates Inc., which he operated for 30 years, the last few at 199 E. Thousand Oaks Blvd., Suite 106.
Borstelmann reportedly got people to invest in second mortgages he sold to homeowners, promising high rates of return and a security interest in the property allegedly pledged to secure the investment. Many of the investors are in Oregon and are over 65.
According to the indictment, Borstelmann spent the investors’ money on personal items, including a car and a home.
Borstelmann’s arrest occurred just after 6 a.m. at his house in Greenmeadow Estates in Thousand Oaks, according to his neighbor, Peggi Clemens, who watched it happen.
Clemens said three vehicles showed up with eight to 10 agents. They handcuffed Borstelmann, took him away, and had his 2005 Lexus RX330 towed. The vehicle is described in the indictment as forfeitable property.
Investors stopped hearing from Borstelmann after he sent them a letter in January 2009 that read:
“Dear investor, I regret I have to tell you that your investments with Sunburst have no value. The current crash of the housing market has wiped out any equity. I have no money or assets left and am $500,000 in debt. All I have left is my Social Security. Given the situation, I am closing Sunburst and will likely file bankruptcy.”
Stephanie McKenzie of Florence, Ore., invested $55,000 with Borstelmann and was glad to hear he was arrested Tuesday.
“It’s a great day,” she said. “None of us expect to get anything back, I’d just like to see him behind bars.”
Miles Weiss, senior deputy district attorney who oversees the Real Estate Fraud Unit in Ventura County, consulted with federal authorities in the early stages of the investigation. He was pleased to get word of the indictment.
“Our office alone received five distinct real estate fraud complaints related to this defendant and we’re glad to see them encompassed in the approximate 100 victims associated with this prosecution,” he said.
Borstelmann will be arraigned Nov. 8 before Judge Thomas Coffin in the U.S. District Court in Eugene, Ore.
Read more: http://www.vcstar.com/news/2010/oct/26/to-man-arrested-in-connection-with-ponzi-scheme/#ixzz13frT8FSG
- vcstar.com
What's funny is that this dbaggy guy would issue HOA citations to me for not moving my car over a 3-day weekend or leaving my garage door open overnight. He would cover and double park his Lexus, too, which just made you want to throw a paint can on it. What a satisfying read for me.
The other neighbor quoted in the article, Peggi, is a real crazy biznatch, but oddly entertaining at arms length. EDITED OUT