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Now investors are complaining that the securities agency, the court, and the receiver are moving too slowly and not getting money back to investors. Through March 31, receiver Donell had taken in $2.6 million, spent $409,000 for lawyers, forensic accountants, and the like, leaving $2.2 million. That’s not much out of a total of $30 million, but tracing and recovering scam money is a tedious process. And there is always the big question: can either La Madrid or Lopez actually pay? Has the money vanished because of putrid investing — or is it reposing elsewhere? Donell may not have recovered much money because it is gone.

“I don’t know what these legal people do,” says San Diegan Ron Nieraeth. “The receiver has $2.2 million. Why can’t he start distributing it, even if it’s only 20 cents on the dollar?” Donell says much depends on funds due from Lopez. Claims processing will have to wait until the Lopez criminal trial is over. “There will be no initial distribution [of money to investors] before six months at the very earliest,” says Donell.

“I can’t believe the courts have taken so long to do something about it,” says Diana O’Grady of Menifee in southwest Riverside County. “They are as bad as Beau is.” When she got in, “It sounded too good to be true. My husband [now deceased] said to be careful, but I needed the monthly income.”

That’s an old and sad San Diego story.

Listen to Don Bauder discuss this further on Reader Radio.

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Comments

Don Bauder June 10, 2009 @ 9:06 p.m.

Response to post #19: The worry is that he has no money to pay a lawyer. On the other hand, there are a lot of hungry lawyers out there. Best, Don Bauder

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Don Bauder June 12, 2009 @ 3:24 p.m.

Response to post #21: Who said he would be able to hire a SMART lawyer? Best, Don Bauder

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SurfPuppy619 June 10, 2009 @ 12:15 p.m.

Do you suppose he found a lawyer as a result of that solicitation?

No way. He has no case.

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SurfPuppy619 June 3, 2009 @ 5:23 p.m.

“I don’t know what these legal people do,” says San Diegan Ron Nieraeth. “The receiver has $2.2 million. Why can’t he start distributing it, even if it’s only 20 cents on the dollar?”

Unless my math is wrong, $2.2 million is not .20 cents on the dollar, it is about .07 cents on the dollar.

Donell says much depends on funds due from Lopez. Claims processing will have to wait until the Lopez criminal trial is over.

I hate to break the bad news-Lopez doesn't have any money-it is gone and that is why he is going to prison.

He made a very big, very stupid mistake-he lied to a federal judge. That is not a wise thing to do. If he didn't have any of the money left he should have been up front with the judge, now he is going to pay the price. And it cold be a big price, as is will La Madrid.

Article doesnt say how old these bums are, but they might see 10-15 years in this scam. They should ask Brent Wilkes for some prison advice.

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Don Bauder June 3, 2009 @ 8:01 p.m.

Response to post #1: A. Nieraeth was saying that off the top of his head. I'm sure he didn't do his arithmetic. I don't fault him on that remark. B. I believe both La Madrid and Lopez lost a bundle by investing poorly. Why Lopez lied to the judge, claiming he would pay, is beyond me. Thus far, officials know that he lost half the $5 million with which he was shorting T paper at just the wrong time. He may have some that he hasn't dissipated. C. La Madrid still has to account for a lot of money -- beyond what he sent to Lopez. Best, Don Bauder

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Don Bauder June 3, 2009 @ 8:02 p.m.

Response to post #2: I am hardly surprised that La Madrid's real estate license has expired. Best, Don Bauder

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MURPHYJUNK June 4, 2009 @ 9 a.m.

so why don't the post pictures of this guy ( and other scammers) so we will know them on sight, and give them some harassment when we see them out in public?

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Don Bauder June 4, 2009 @ 9:52 a.m.

Response to post #5: The reason is I couldn't locate a picture of him. Best, Don Bauder

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SurfPuppy619 June 4, 2009 @ 11:48 a.m.

so why don't the post pictures of this guy ( and other scammers) so we will know them on sight, and give them some harassment when we see them out in public?

By MURPHYJUNK

Response to post #5: The reason is I couldn't locate a picture of him.

Best, Don Bauder

http://www.10news.com/2008/0704/16787632_240X180.jpg

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Don Bauder June 4, 2009 @ 12:47 p.m.

Response to post #7: Yes, in the process of researching this column, I saw that photo. Would you run a photo of that quality in a print publication? Please. Maybe I should have said "suitable" picture. Best, Don Bauder

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SurfPuppy619 June 4, 2009 @ 1:14 p.m.

Yeah, it was a pretty low quality pic!

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Don Bauder June 4, 2009 @ 2:26 p.m.

Response to post #9: It wouldn't have worked for us. Best, Don Bauder

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JakeSD June 4, 2009 @ 4:03 p.m.

Check of county NOD's shows that he had at least 4 Notices of Default on real estate last year with his residence almost foreclosed in October. So much for the real estate guru, I bet a lot of the investor money went into his home mortgage payments ($1.6MM mortgage debt as of October 2008).

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Don Bauder June 4, 2009 @ 9:05 p.m.

Response to post #11: He lived in a posh home in Jamul. He is no longer there. He bragged he had a secret surefire formula for achieving real estate profits, just as he had for beating the stock market. Best, Don Bauder

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Don Bauder June 4, 2009 @ 9:08 p.m.

Response to post #12: Hopefully, the receiver's report will show whether he commingled his real estate and stock market investors' funds, and whether he dissipated those funds on his personal assets, such as his luxurious home. Best, Don Bauder

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Don Bauder June 4, 2009 @ 9:11 p.m.

Response to post #13: Agreed: it's hilarious. Best, Don Bauder

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Don Bauder June 6, 2009 @ 8:43 p.m.

Response to post #17: It's classic. Do you suppose he found a lawyer as a result of that solicitation? And who was the lawyer? Best, Don Bauder

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SurfPuppy619 June 12, 2009 @ 12:40 p.m.

The worry is that he has no money to pay a lawyer. On the other hand, there are a lot of hungry lawyers out there. Best, Don Bauder

By dbauder

Smart lawyers do not work for free, which is what they would be doing with this clown.

So being hungry is one thing, working for free is another.

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