February 7, 2023 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

Judge Hands Down Five-Year Prison Sentence to Disbarred Attorney Caught Running Fake Real Estate Investment Fund Including Santa Monica, Hermosa Beach, and Los Angeles Properties

Prosecutors say defendant DEREK Jones sold interests in real estate that he did not own

DEREK Jones, a disbarred California attorney, was sentenced to five and a half years in prison by United States District Judge Loretta A. Preska. Jones had pled guilty to one count of wire fraud for running fraudulent investment funds, including real-estate and venture-capital firms, which defrauded investors of over $8.6 million from at least 2012 through 2019. 

“When investors purchase shares in real-estate funds and other investment funds, those investors have every right to expect that the people promoting and selling those investments are treating them honestly and telling them the truth about their investments.  Today, Derek Jones, a disbarred attorney, was held accountable for violating this right over an extended period, selling interests in real estate that he falsely claimed to own and defrauding his investors out of millions of dollars,” said U.S. Attorney Damian Williams. 

Jones defrauded victims by investing their money in companies and funds he had control of, such as “BlueRidge”, “Living City” and “Atiswin”, and “Realize Holdings” (a venture capital firm), between 2012-2019. Information regarding the matter is found in the Indictment, court statements and other publicly filed documents.

Jones deceived investors by lying about real-estate developments, including a “resort village” and an existing hotel he claimed to control on Semiahmoo Spit in Washington State, as well as a ranch in Colorado and other properties in California, including in Santa Monica, Hermosa Beach, and Los Angeles. In reality, Jones did not own or control any of those properties. Instead of using investors’ money as promised, Jones misappropriated it for personal use, including private-school tuition for his children.

As part of this scheme, Jones sent counterfeit documents, including doctored bank statements, fake financial statements and contractual agreements, forged land leases, and fictional asset allocations to investors. He also used other individuals’ names in email communication to persuade investors his businesses were viable.

In total, Jones defrauded investors over $8.6 million. He was suspended and ultimately disbarred for intentionally misappropriating a client’s money and misrepresenting it to the court, clients, and others.

Related Posts

Billionaire Tech Duo Spends Nearly $10 Million on Two Side-by-Side Venice Homes

February 3, 2023

February 3, 2023

Tech entrepreneurs Zach Perret and Afton Vechery buy side-by-side homes in Venice for nearly $10 million By Dolores Quintana More...

Measure ULA Heading to Court as Landlords, Taxpayers Association File Lawsuit Against City of Los Angeles

February 3, 2023

February 3, 2023

Measure is intended to fund affordable housing and tenant assistance programs through a property transfer tax By Dolores Quintana Measure...

4-Bed, 5-Bath Home Hits Market in Mar Vista for $3.4M

February 3, 2023

February 3, 2023

Ashwood Avenue home offers 3080 square feet of living space  A stunning four-bedroom, five-bathroom home has hit the market in...

Elderly Homeless Man Dies in Venice Following Oxygen Leak From Propane Heat Lamp

February 2, 2023

February 2, 2023

Man dies from accidental asphyxiation Wednesday on the 600 block of Venice Boulevard By Sam Catanzaro An elderly homeless man...

New Pizza Joint Coming From The Rose Venice’s Chef Jason Neroni

February 2, 2023

February 2, 2023

Best Bet to open in former A-Frame space on Washington Boulevard By Dolores Quintana It’s official, chef Jason Neroni will...

Mar Vista Restaurant Celebrating 4 Year Anniversary With Free Bahn Mi Sandwiches

February 1, 2023

February 1, 2023

My Lai party to feature free Banh Mi Sandwiches, gift card prizes, and other goodies!   By Dolores Quintana On February...

Proposed Hike in Hourly Wages for Fast-Food Employees in California Halted by Referendum

February 1, 2023

February 1, 2023

AB 257 would create a board of 11 appointees to negotiate on behalf of fast food workers in California Last...

City Officials Launch New Initiative to House Homeless at CD-11 Encampment

February 1, 2023

February 1, 2023

Two Inside Safe initiatives launched in South LA and Westside By Sam Catanzaro City officials have announced a new effort...

Los Angeles Welcomes Girl Scout Cookie Season With New Treat!

January 31, 2023

January 31, 2023

Cookie lovers throughout Greater Los Angeles can now support local Girl Scout entrepreneurs by ordering from the iconic lineup Girl...

Boris Allakhverdyan, Ben Hong and Talon Smith Unite in Santa Monica for Special Performance of Brahms’ Trio Op. 114

January 31, 2023

January 31, 2023

Concert will take place on Sunday, February 5 The world-renowned Los Angeles Philharmonic’s Principal Clarinet Boris Allakhverdyan and Associate Principal...

Metro’s Choice for Purple Line Muralist Sparks Veteran Concern

January 31, 2023

January 31, 2023

Veterans concerned over disturbing painting by commissioned metro muralist at the purple line stop on the West L.A VA Soldiers...

Mayor Karen Bass Appoints Key Administration Figures to Tackle Homelessness, Sustainability and Infrastructure

January 31, 2023

January 31, 2023

Mayor appoints three Deputy Mayors and three Directors last week Mayor Karen Bass has wasted no time in the transition...

LAPD Links TikTok to Rise in Kia and Hyundai Vehicle Thefts in Los Angeles

January 31, 2023

January 31, 2023

Social media platforms exacerbate vehicle thefts through security flaws Kia and Hyundai vehicles have become a major target for car...

Marina del Ray Man Sentenced for Fraudulently Exploiting Deceased Couple’s Identities to Access Bank Accounts

January 30, 2023

January 30, 2023

Kristopher Brent Cobb sentenced to over 3 years in federal prison A man from Marina del Ray was recently sentenced...

Public Interest Lawyer Objects to Silencing of Public at Ballona Wetlands Hearing

January 30, 2023

January 30, 2023

Letter seeks new hearing Christina Ku, a public interest lawyer, sent a demand letter to the California Coastal Commission last...