Man Charged With Fraud Is Released Without Bail

The former president of an El Cajon real estate investment company who is charged with 151 counts of fraud was released without bail Wednesday after a bail review hearing in San Diego Municipal Court.

Paul John Boileau, 44, of El Cajon, had been in County Jail since his arrest last Thursday. Municipal court Judge Richard Hanscom set bail at $100,000 last week at Boileau’s arraignment.

Boileau must report to a probation officer once a week as a condition of his release. He also is prohibited from having any contact with investors in his former firm, according to Deputy Dist. Atty. Clifford Dobrin.

In the weeks before his arrest, Boileau sent letters to investors, asking for additional funds and conducted a meeting of investors at Balboa Park, at which he also tried to obtain additional money.

Boileau, founder of the Boileau & Johnson real estate investment firm, which operated branch offices in La Jolla and Rancho Bernardo, faces charges of bilking 55 investors out of nearly $1 million from January through June of 1982, just before the company went bankrupt.

Prosecutors allege that his company, which apparently had operated legitimately for 14 years, was engaged in a Ponzi scheme. Authorities claim Boileau had been warned by a company vice president of the possible illegalities.

Boileau’s court-appointed attorney, Roy Gunner, is expected to appear today before Hanscom to request a postponement of a Feb. 1 preliminary hearing date.