Downey man charged with running alleged Ponzi scheme

A Downey man has been charged with running a Ponzi scheme and related mortgage scam that took in more than $20 million.

Juan Rangel, who used Spanish-language TV, radio and newspaper ads to advertise his businesses, was already in custody — he was convicted last year of bribing a Bank of America bank manager. In addition to Rangel, two other men were arrested in connection with the alleged mortgage scam.

Rangel, 46, faces a maximum of 95 years in federal prison from last year’s conviction and up to 232 years in prison if convicted of running the alleged Ponzi and mortgage scams. He did not have a lawyer as of Thursday evening to represent him on the new charges.

A federal grand jury indictment alleges that Rangel and his company, Financial Plus Investments, promised investors annual returns of 60%, and in some cases 100%, from the profits from real estate and lending deals.

But it is alleged that Financial Plus made no actual profits in recent years, and that Rangel instead used new investor money to make payments to earlier investors. Prosecutors charge that Rangel also used investors’ money to make payments on his $3-million home, Lamborghini sports car and a limousine, and to buy cocaine.

In the alleged mortgage fraud, Rangel and others targeted Latino homeowners who were at risk of losing their homes, according to a statement from the U.S. attorney’s office in Los Angeles. Instead of helping the homeowners, as promised, Rangel allegedly took the titles of the homes and drained the equity out of them, in part by selling the properties to straw buyers and then falsifying documents to take out loans.

Also arrested in connection with the alleged mortgage scam was Javier Juanchi, 42, of Sherman Oaks, who was vice president at Financial Plus. He was denied a request for bail Thursday.

And Pablo Araque, 40, of Downey, who owns A One Tax Pros in Downey, was arrested Wednesday in connection with the alleged mortgage fraud. He is scheduled to have a bail hearing on Friday.

Lawyers for Juanchi and Araque could not be reached Thursday for comment.

nathan.olivarezgiles@latimes.com