Now that the real estate bubble is bursting, the fraud schemes are coming out. For example: Jeanetta M. Standefor, 40, of Altadena, through a Pasadena company called Accelerated Funding Group, allegedly ran a Ponzi scheme in 2005-2007 that promised returns of up to 50% within four to six weeks. The LA Times says more than 600 people invested $18 million in the scheme, which was to reap rewards by helping homeowners avoid foreclosure. The Securities and Exchange Commission charges that Standefor spent $1.9 million on lavish spending for herself.
LA Times Real Estate Blog has details.
Read the comments afterward: apropos of nothing, one commenter has found out that she supports Republicans, and that the LA Times did a feature story on Standefor in 2004 as a successful house flipper.
