5 p.m., May 26
Vassallo Has Serious Criminal Exposure, Says His Lawyer
In a declaration filed today (Dec. 10) with U.S. District Court Judge Irma Gonzalez, attorney John Lemon, attorney for Alfred Louis "Bobby" Vassallo, said he had talked with David Brown of the Securities and Exchange Commission and Phil Halpern, assistant U.S. attorney. Vassallo is "extremely likely to be indicted for fraud related charges," wrote Lemon. The indictment would "contain conspiracy charges" dating back to Presto Telecommunications, in which Vassallo fleeced a number of San Diegans. In 2005, the SEC enjoined him from committing securities fraud, and he was told to pay the agency $2 million. The SEC showed how Vassallo went on to other telecommunications scams -- telling investors their money would go into equipment and then steering the money into his own posh lifestyle. He never paid the money owed the SEC. Gonzalez has warned him that he could be held in criminal contempt of court. That is separate from this action.