ENCINITAS : Trader Admits Fraud in Gold, Silver
A San Marcos man pleaded guilty Monday in federal court to two counts of fraud involving the sale of silver and currency investments.
Matthew D. Nerbonne, 33, admitted guilt on two counts of mail and wire fraud arising from his two investment companies.
Nerbonne operated two companies, Rainbow Metals Exchange and Federal Bullion Exchange Inc., both based in Encinitas. The companies were investigated for telemarketing fraud by the Boiler Room Task Force, a combination of FBI and Postal Service employees that concentrates on the San Diego area.
Nerbonne pleaded guilty to cheating potential investors of $600,000 from 1985 to 1987. The people were called on the phone and given a false promise that they could “make a $1,000 investment of gold and silver work like $5,000.”
Nerbonne is scheduled for sentencing Jan. 13.
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