Here's something you might be interested in.
Matthew (Beau) La Madrid, Lance La Madrid, and Eric Montiel have been charged by the U.S. attorney's office for mail, wire, and bank fraud in their alleged role in a $30 million scam. Matthew La Madrid was also charged with money laundering and witness tampering. They operated the investment scheme out of an El Cajon office that also dealt with real estate, according to the government. Investors were told that the stock trading scheme, supposedly dealing with covered calls, had far more money in the pot than actually reposed there. Matthew La Madrid transferred $7.6 million from his accounts to another entity he controlled without telling investors, who were largely from East County. The operation fraudulently obtained more than $34 million from lenders through false loan applications, says the government. Potential borrowers' incomes and assets were substantially overstated, while the operators fabricated bank statements and forged documents, according to the government. The story of this scheme appeared in my column of June 3, 2009.
Matthew (Beau) La Madrid, Lance La Madrid, and Eric Montiel have been charged by the U.S. attorney's office for mail, wire, and bank fraud in their alleged role in a $30 million scam. Matthew La Madrid was also charged with money laundering and witness tampering. They operated the investment scheme out of an El Cajon office that also dealt with real estate, according to the government. Investors were told that the stock trading scheme, supposedly dealing with covered calls, had far more money in the pot than actually reposed there. Matthew La Madrid transferred $7.6 million from his accounts to another entity he controlled without telling investors, who were largely from East County. The operation fraudulently obtained more than $34 million from lenders through false loan applications, says the government. Potential borrowers' incomes and assets were substantially overstated, while the operators fabricated bank statements and forged documents, according to the government. The story of this scheme appeared in my column of June 3, 2009.
Mail and wite fraud, if it interfers with interstate commerce, can be filed under RICO. Do you know if it was filed as a RICO count?
RICO also allows the AUSA to go after them civilly at the same time, with treble dsmages.
Response to post #1: I didn't see any RICO charges, but I may have missed them. Best, Don Bauder
If you didn't see it then they didn't file it that way.
This guy is in BIG trouble.
Federal prison does not have parole-10 years is 10 years.
Response to post #3: Yes, big trouble. You can go back and read my June 3 piece. Best, Don Bauder
Deeds finally catching up. Hope they enjoyed the luxury lives they led while they had it. Will be very different for the next few years.
I hear federal prison is actually very luxurious.
Well, except "SuperMax" in CO.
Response to post #5: When I did the column about La Madrid June 3, I talked to a number of victims. It was tragic what La Madrid and his colleagues did to these people. Best, Don Bauder
Response to post #6: If they are found guilty, should they check into the pokey carrying their golf clubs? Best, Don Bauder
If they are found guilty, should they check into the pokey carrying their golf clubs?
Don't know about gold clubs, but I would suggest a large supply of "Soap-on-a-Rope".
Response to post #9: I confess I had to look up "soap-on-a-rope" before I got your gag. Point well taken. Best, Don Bauder
Since they will be flight risks, they will probably not go to low security prison, but to a medium security prison which have cells instead of dorm rooms. Maybe Lompoc or Victorville, unless they move them out of state which is quite common.
"Cells are approximately 4 × 2 m (13 × 7 feet) in size equipped with a bunkbed, a stainless steel sink-toilet combination and a small table with a non-removable stool. Cells are usually occupied by two inmates and are air conditioned."
JakeSd seems to know too much about the accomodations.
Luxurious? Not unless you think of Motel Six and Ritz Carlton as being about the same. Those federal slammers are generally better, it is reported, than state prisons. But that doesn't make them anywhere you or I would want to reside. If/when these clowns are sent up, they will not get their former lifestyle.
Just in the past couple days in Superior Court, the woman who embezzled millions from her North County cabinet shop employer got 18 years. Who would have ever guessed that cabinet making could be so profitable? Sounds as if the owners didn't even know. For sure, she won't see luxury in a state prison. The budget crisis will make sure there aren't any steak and lobster nights there.
Response to post #11: Doesn't sound like a pleasant existence to me. Best, Don Bauder
Response to post #12: You can probably look it up on the web. You don't have to have had personal experience these days. Best, Don Bauder
Response to post #13: The prison guards union is so powerful that there might not be significant cuts in prison expenditures. There are a lot of people in state prisons who don't belong there; they are there because of that union's puissance. Best, Don Bauder
Agreed about the prison guards undue influence.
The other shoe has not dropped on that cabinet shop. There is something strange about a business that can overlook a million missing dollars a year ---- until the recession hits.
That story is just the beginning. There is a crime behind every fortune and if the investigators don't stop with her theft, they will find something else.
Response to post #17: Excessive prison guard union influence is one factor that did Gray Davis in. Best, Don Bauder
Response to post #18: Agreed. The report of an embezzlement of several million from a cabinet shop suggests that a more thorough investigation is needed. I believe that something else may lurk in this one. Best, Don Bauder