April 22, 2024 Your Source for Brentwood News

California Attorney Sentenced to 5.5 Years in Prison for Defrauding Investors in Real Estate Scheme

Prosecutors say defendant DEREK Jones sold interests in real estate that he did not own

DEREK Jones, a disbarred California attorney, was sentenced to five and a half years in prison by United States District Judge Loretta A. Preska. Jones had pled guilty to one count of wire fraud for running fraudulent investment funds, including real-estate and venture-capital firms, which defrauded investors of over $8.6 million from at least 2012 through 2019. 

“When investors purchase shares in real-estate funds and other investment funds, those investors have every right to expect that the people promoting and selling those investments are treating them honestly and telling them the truth about their investments.  Today, Derek Jones, a disbarred attorney, was held accountable for violating this right over an extended period, selling interests in real estate that he falsely claimed to own and defrauding his investors out of millions of dollars,” said U.S. Attorney Damian Williams. 

Jones defrauded victims by investing their money in companies and funds he had control of, such as “BlueRidge”, “Living City” and “Atiswin”, and “Realize Holdings” (a venture capital firm), between 2012-2019. Information regarding the matter is found in the Indictment, court statements and other publicly filed documents.

Jones deceived investors by lying about real-estate developments, including a “resort village” and an existing hotel he claimed to control on Semiahmoo Spit in Washington State, as well as a ranch in Colorado and other properties in California, including in Santa Monica, Hermosa Beach, and Los Angeles. In reality, Jones did not own or control any of those properties. Instead of using investors’ money as promised, Jones misappropriated it for personal use, including private-school tuition for his children.

As part of this scheme, Jones sent counterfeit documents, including doctored bank statements, fake financial statements and contractual agreements, forged land leases, and fictional asset allocations to investors. He also used other individuals’ names in email communication to persuade investors his businesses were viable.

In total, Jones defrauded investors over $8.6 million. He was suspended and ultimately disbarred for intentionally misappropriating a client’s money and misrepresenting it to the court, clients, and others.

Related Posts

(Video) Ariana Madix Confirms Something About Her Will Open Soon at LA Times Festival of Books

April 22, 2024

April 22, 2024

Ariana Madix answers the questions that fans want to ask at the Festival of Books as she appears to support...

Comedian Michelle Collins Brings her Big Natural Tour to LA

April 21, 2024

April 21, 2024

She’s funny, tall, glam and finally long-legging her way across these United States… it’s the Michelle Collins stand-up comedy tour...

Former CBS CEO Admits Role in Disclosure of Confidential Police Information

April 21, 2024

April 21, 2024

Leslie Moonves Fined for Aiding Misuse of Confidential Data in LAPD Complaint Former CBS CEO Leslie Moonves has acknowledged his...

Los Angeles Police Department Reveals Identity of Victim Found in Stolen U-Haul Truck in West Adams

April 21, 2024

April 21, 2024

Body Found in Rental Vehicle Was Shot in the Head, LAPD Seeks Information Detectives from the West Bureau Homicide Division...

Outrage Erupts Over Demolition of Iconic Midcentury Craig Ellwood Home in Brentwood

April 21, 2024

April 21, 2024

Destruction of Zimmerman House Creates Internet Backlash Preservationists lamented last year when another treasure of L.A.’s midcentury modern architecture vanished,...

Make Science Your Destination This Summer

April 19, 2024

April 19, 2024

Destination Science is the fun science day camp for curious kids with over 15 STEM activities weekly, three science stations...

Prime Time Sports Camps Coming Soon

April 19, 2024

April 19, 2024

Prime Time Sports Camp has remained a constant in the everchanging camp landscape for over 30 years by following this...

Groundlings Summer Improv Classes Open April 2

April 19, 2024

April 19, 2024

A summer of improvisation is around the corner at The Groundlings.  Three months of summer class offerings for teens will...

Get Jokerfied with The People’s Joker Director Vera Drew Interview; Now Playing at the Nuart Theatre

April 19, 2024

April 19, 2024

Vera Drew on Crafting a Trans Supervillain and Creating Comedy Chaos By Dolores Quintana The People’s Joker is an explosive...

Nicolas Cage Stars in Arcadian: A Bewitching Apocalypse

April 18, 2024

April 18, 2024

New Horror Film Delivers Solid Monster Movie Experience Arcadian is a new horror film starring Nicolas Cage (Dream Scenario, Mandy),...

Westside Woman Pleads Guilty to $2M COVID-19 Loan Fraud, IRS Scam

April 18, 2024

April 18, 2024

Suspect Admits to Wire Fraud, False Claims in Elaborate Scheme Casie Hynes, a resident of the Mid-City area, entered a...

Body Found Abandoned in Stolen U-Haul Truck in Los Angeles Mid-City

April 18, 2024

April 18, 2024

LAPD Investigates Disturbing Discovery After Worker Reports Foul Odor Authorities are probing a disturbing incident after a body was discovered...

Brentwood Beat: BHA Annual Meeting, Fire Danger and the Homeless

April 18, 2024

April 18, 2024

Brentwood Brentwood Homeowners Association (BHA) held its annual meeting recently at the Brentwood School’s middle school auditorium. Before all the...

(Video) Award-Winning Pianist to Premiere “Rocket Man: A Live Orchestral Experience” in Santa Monica

April 18, 2024

April 18, 2024

Classic Songs Will Include “Crocodile Rock” and “Goodbye Yellow Brick Road” @brentwoodnewsla “Rocket Man” is coming soon to Santa Monica...

Tito’s Tacos to Introduce New Chicken Burrito for Cinco De Mayo

April 17, 2024

April 17, 2024

Beloved Westside Eatery Unveils Fresh Addition to Timeless Menu Tito’s Tacos, a cherished Los Angeles establishment renowned for its timeless...