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Matthew "Beau" La Madrid and his brother Lance La Madrid pleaded guilty in federal court today (Jan. 3) to conspiracy and fraud charges. The two, along with several others, worked out of an El Cajon office. According to court records, Beau La Madrid fraudulently solicited more than $30 million for his Plus Money Premium Return Funds. He told investors the money was going into "covered calls," a stock market strategy by which an investor enhances income by selling call options on stocks already owned. But he used much of that money to pay off earlier investors (making it a Ponzi scheme), and he secretly funneled more than $7 million to a bank account he controlled. To soothe investors, he sent them fictitious monthly statements. (Does any of this sound familiar, San Diegans?) He also took investor money for a phony real estate scheme. And he got millions of dollars from lenders by submitting false loan documents.

His brother, Lance Madrid, pleaded guilty to a lesser charge of executing a fraud scheme through the U.S. mails.

There is a completely separate Ponzi scheme occupying federal courts today. Escondido attorney Gustav G. Bujkovsky was sentenced to a year in prison for his role in concealing proceeds of a Ponzi scheme operated by his client, Mohit Khanna and Khanna's business, Mak 1 Enterprises. Khanna had solicited millions from the public by falsely claiming he was engaged in a foreign currency trading program. (Does this sound familiar, too?) Bujkovsky concealed the scam from investors and also lied to federal regulators about Khanna.

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Comments

Visduh Jan. 3, 2011 @ 7:36 p.m.

Hey, those were excellent ideas of Dominelli's. Why should they go to waste? Several generations of grifters can sell the same snake oil to generations of fools.

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Don Bauder Jan. 3, 2011 @ 9:09 p.m.

Actually, Dominelli didn't come up with the ideas, either. Nor did Ponzi, I suspect. He just got his name on the scheme. Best, Don Bauder

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Don Bauder Jan. 4, 2011 @ 2:37 p.m.

Beau admitted his victims lost $20 million to $50 million. He and his brother have agreed to pay restitution. Where is the money so they can pay it back? Come now. Best, Don Bauder

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SurfPuppy619 Jan. 4, 2011 @ 11:26 a.m.

10 years!!!

He should have just killed someone, then have our former gov "Mr. Clown Hair" give him a pardon his last 6 hours in office......cutting a 16 years sentence by over 60%, less time than the 10 years he is getting.

Oh wait-I forgot-you have to be connected to get gov deals like that, my bad.

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MURPHYJUNK Jan. 4, 2011 @ 2:22 p.m.

Arnold is making last minute friends so he will get a good appointment to a gov. job ( once the head dies down)

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Don Bauder Jan. 4, 2011 @ 2:40 p.m.

Don't you think he will go back to making B grade movies? Best, Don Bauder

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Don Bauder Jan. 4, 2011 @ 2:39 p.m.

There are a lot of screams about the Governator's last-minute pardon. Best, Don Bauder

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SurfPuppy619 Jan. 4, 2011 @ 3:55 p.m.

I have read several hundred coments on the LA Times and SD Unions websites, at least 300+, and I have only read one that was positive.

It was disgraceful, unethical, lacked moral standing and was the boneheaded move of the century in a pretty sorry excuse for a governor who made a LOT of boneheaded moves.

2 days ago I was just disappointed with Mr. Clown Hair. Today I am ashamed I voted for Mr Clown Hair. And that is the honest truth.

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Don Bauder Jan. 5, 2011 @ 7:40 a.m.

What's so unusual about disgraceful, unethical, amoral and boneheaded moves by politicians? Best, Don Bauder

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MURPHYJUNK Jan. 5, 2011 @ 8:04 a.m.

no fun having our noses rubbed in it. ( just because he was elected, and chose to screw the voters,,, but then that seems to be the norm these days)

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Don Bauder Jan. 5, 2011 @ 12:11 p.m.

He can always go back to shooting machine guns with his muscles bulging and cameras running. Too bad he couldn't pull off something like that in Sacramento. Best, Don Bauder

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SurfPuppy619 Jan. 5, 2011 @ 8:28 a.m.

Arnold had his own $$$, he claimed he could not be bought off.

I made the mistake of believing that Clown Haired fool.

The damage he has done to the credibility of our is so severe it is incalculable.

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Don Bauder Jan. 5, 2011 @ 12:15 p.m.

If Jerry Brown shuts down redevelopment agencies statewide, we will be off to a great start. But will he? Or will he even enforce redevelopment law, which is brazenly broken by downtown developers and CCDC in San Diego? Best, Don Bauder

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