AGOURA : Judge Allows Bail in Investment Fraud

Charles J. Francoeur, sentenced to 7 2/3 years in prison last week for his involvement in a major investment fraud scheme, was allowed to remain free on $250,000 bail Friday while he appeals his conspiracy and theft convictions.

Arguing for his client’s release, attorney William Maxwell said Francoeur, of Agoura, is not a danger to society or a flight risk. Maxwell said substantial issues regarding his client’s conviction would be raised on appeal. Specifically, he said, Francoeur’s case should have been governed by state real estate laws rather than the Penal Code.

Deputy Dist. Atty. Rebecca S. Riley argued that Francoeur poses a danger to the community because he now works as a consultant for another real estate company.

“He’s continuing to work in the real estate field and he’s been found guilty of fraud,” Riley said after the hearing.

In what has been called the biggest fraud trial in Ventura County history, Francoeur and his employer Olen B. Phillips were accused of taking millions of dollars from investors and giving them trust deeds that were never recorded and were essentially worthless.

Francoeur was convicted of four grand-theft-by-fraud charges and one conspiracy count, while Phillips was convicted of only one theft charge and was sentenced to 60 days in jail.

Francoeur, 35, clutched Maxwell’s arm when Ventura County Superior Court Judge Frederick A. Jones allowed him to remain free during his appeal. He hugged his wife, Sue, who told reporters she was surprised.

“The judge hasn’t done anything our way,” she said.

Maxwell said he was also surprised, but added that Francoeur is already suffering. “This guy has been reduced to rubble financially,” the attorney said.