EUGENE, OR—Today, Louis J. Borstelmann, 68, of Thousand Oaks, California, pleaded guilty to mail fraud and money laundering in connection with a Ponzi scheme that reached Florence, Oregon.
The d efendant admitted to soliciting approximately 100 individuals, a majority of whom are residents of Florence, Oregon, to invest in real estate through his company, Sunburst Associates, Inc., a California corporation, bilking them out of more than $18 million.
The defendant claimed to offer hard-money loans through his company that were secured by real estate deeds of trust. To entice individuals to invest, the defendant falsely promised high rates of return and a security interest in the property allegedly pledged to secure the investment. Additionally, the defendant sent investors fraudulent investment materials, including the supposed deeds of trust.
As part of his plea, the defendant admitted that the alleged investments never existed and that it was all a Ponzi scheme—he used new investor money to pay existing investment obligations. The defendant further admitted to spending investor money on personal items, including a car and a home.
“The citizens that are defrauded in schemes like this are quite often left financially and emotionally devastated,” said Marcus Williams, Special Agent in Charge of the Seattle Field Office of Internal Revenue Service - Criminal Investigation. “The talents of investigators from IRS-Criminal Investigation, the FBI, and the state of Oregon were utilized in this case to ensure this man was held accountable for his actions.”
Monday, April 4, 2011
Louis J. Borstelmann Pleads Guilty in $18 Million Ponzi Scheme
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Report Securities Fraud by Calling 1-888-482-6825 or by visiting
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