El Cajon
The president of a bankrupt El Cajon real estate investment company and an employee were ordered Monday to stand trial on 181 counts of fraud and security sales violations.
Following a three-week preliminary hearing, San Diego Municipal Court Judge Richard Hanscom set a May 20 arraignment in Superior Court for Paul John Boileau, 44, of El Cajon, and Lillian Louise Stagliano, 43, of Coronado.
Boileau was president of Boileau & Johnson, which went bankrupt in June, 1982, after being in business for 14 years, and Stagliano was in charge of trust deed investments at the company’s El Cajon office.
The charges stem from a six-month period in 1982 when 55 investors lost about $1 million, according to Deputy District Attorney Cliff Dobrin.
Hanscom dismissed four charges at Dobrin’s suggestion because the investor involved in those counts was unavailable to testify.
Boileau’s attorney, Roy Gunner, urged the judge to dismiss all the charges, saying the business did not act as a “Ponzi scheme.”
“Mr. Boileau has been in business for a long time. He didn’t get in trouble with the law until there were problems in the real estate market,” Gunner said.
Boileau and Stagliano remain free on their own recognizance.
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