Simi Valley Man Pleads Guilty in Fraud Case
A Simi Valley man pleaded guilty Tuesday iS. District Court in Los Angeles to two counts of mail fraud and one count of bank fraud for his role in one of the largest Ponzi schemes in the country, which bilked about $12 million from more than 200 unsuspecting investors.
Robert Dumas, 36, who served as vice president of the Woodland Hills-based California Anchor Group, admitted that he lured potential investors into the real estate investment firm although he knew it was not a legitimate business, Assistant U. S. Atty. Anita Dymant said.
California Anchor was supposed to be turning a tremendous profit from the development and sale of apartment buildings in the San Fernando Valley, and investors were usually promised a return on their investments of 25%.
But although the company owned some properties, most of the interest payments came from money supplied by new investors.
The scheme, which began in September, 1983, collapsed in May, 1987.
Sentencing has not yet been scheduled for Dumas, who faces 12 years in prison and $505,000 in fines, Dymant said.
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