Encino Developer Indicted on Charges of Misusing Funds

An Encino developer was indicted by a federal grand jury Wednesday on charges he misused investors’ funds, lied about tax benefits and covered up the fact that historical landmark properties were not being developed as promised.

The panel returned a 30-count indictment charging Mark R. Anderson, 36, with mail fraud in connection with 20 limited partnerships he formed in the mid-1980s that were to purchase, renovate and lease historical properties across the nation, U.S. Atty. Lourdes G. Baird said.

The indictment focused on three partnerships and alleged that Anderson, who operated through his companies--Marlin Industries and Marlin Properties--enticed business partners into investing by misrepresenting the success of prior ventures.

Anderson is accused of illegally using investor funds from one partnership to benefit another and diverting funds to meet unrelated expenses. The indictment alleged that he also covered up the fact that investors’ projects were not being developed and rehabilitated “so as to lull and stall investors and prevent them from learning that they had been defrauded.”

Each offense carries a maximum penalty of five years in prison and a $250,000 fine. If convicted on all 30 counts, Anderson faces a maximum penalty of 150 years in prison and a $7.5-million fine.