Matt Potter 12:30 p.m., Sept. 2
La Madrid Associate Gets 51 Months
Moises Pacheco, a partner of Matthew "Beau" La Madrid, was sentenced today (Sept. 16) to 51 months in prison for, among several things, running a Ponzi scheme. Before 2005, Pacheco worked with La Madrid, his high school chum. Then Pacheco set up an investment program similar to La Madrid's.
Pacheco raised more than $14.7 million from investors promising to make their money grow by purchasing stocks and selling covered call stock options. But it turned into a Ponzi scheme, according to the government. Then Pacheco diverted $3 million of client funds into a risky investment promoted by La Madrid.
All that money was lost, but Pacheco sent out false statements concealing the losses, according to the U.S. Attorney's office. La Madrid got 120 months in custody July 28, and his brother Lance got 30 months Aug. 4.
More like this:
- Land of Ponzis, Penny Stock Swindles — May 31, 2012
- San Diego: Another Day, Another Ponzi — May 22, 2012
- Two More SD Specials: Ponzi, Real Estate Swindle — Sept. 22, 2011
- Ponzi Schemer Gets One of Longest S.D. White-Collar Sentences — May 16, 2011
- El Cajon Scam — June 3, 2009