Weekly Real Estate News
A San Diego man was sentenced October 30 to 63 months in federal prison for an investment fraud scheme that took more than $8.2 million from victims who believed their money would finance real estate transactions, including accessory dwelling units.
The U.S. Attorney’s Office for the Southern District of California said Ethan Joseph Sanchez persuaded victims to lend money to him and BSC Equity Ventures LLC by representing that the funds would be used for projects such as constructing ADUs on specified properties.
Prosecutors Say Funds Went to Day Trading
According to the Justice Department, Sanchez admitted in his plea agreement that he did not finance the promised real estate transactions or construct ADUs. Instead, he lost victims’ money through risky day trades and rarely repaid them.
U.S. District Judge Robert S. Huie also ordered Sanchez to forfeit more than $8.2 million and pay restitution to victims. The department said victims described substantial personal and financial harm during the sentencing hearing.
Investor Due Diligence
The case illustrates the risks of relying on unverified claims about property-backed investments. The criminal conduct and sentencing are established by the Justice Department’s announcement; the release does not establish that legitimate ADU investments generally involve similar practices.
Simple Content Summary
Ethan Joseph Sanchez received a 63-month federal prison sentence for defrauding investors of more than $8.2 million through purported real estate and ADU projects. Prosecutors said the money was instead lost in day trading.
