Broker Convicted of Embezzling More Than $1 Million

A Lancaster investment broker was convicted Friday of stealing more than $1 million from investors who placed their money with him in hopes of profiting from the Antelope Valley’s housing boom.

Jurors deliberated two days in Van Nuys Superior Court before convicting Raj K. Puri, 37, of four counts of embezzlement and one count of conspiracy to embezzle.

The jury acquitted the native of India, who operated Puri Financial Inc. in Lancaster, of one count of embezzlement. Puri faces up to 10 years in prison when he is sentenced Jan. 13.

Prosecutors said that for several years Puri converted investor’s money to his own use, often using it to buy property in his own name.

Until real estate values plummeted in 1991, Puri was able to continue attracting new investors whose money went to make payments to earlier investors, Deputy Dist. Atty. Robert Foltz said.

“But even without the drop in property values,” Foltz said, “I think this house of cards was about to fall. He had gotten too greedy.”

Foltz said that on one piece of property with an appraised value of $130,000 Puri had brokered loans for clients totaling more than $900,000.

Clients seldom asked for documentation of their investments, the prosecutor said. Many had profited in earlier dealings with Puri.

If they had asked, Foltz said, Puri would have been stopped promptly because “the documents alone convict him.”

Puri’s wife and business partner, Moyne M. Puri, 45, also is charged with embezzlement.

She fled the area shortly after charges were filed a year ago, Foltz said.

Foltz speculated that Puri, who moved in a circle of successful professionals and investors, began taking clients’ money because he “wanted desperately to keep up with these people.”

The chief victims were Dr. and Mrs. Romeo Stoll and a group of investors doing business as Collini & Co.

Defense attorney Max Albaum tried to persuade the jury that Puri was a victim of sloppy work by his office employees.

He argued that those who lost money should bring a civil suit against Puri but that criminal charges should not have been filed.

Albaum also introduced into evidence notes written by Puri that the attorney said proved he was taking orders from European investors.

The attorney contended that the overseas investors betrayed Puri by failing to keep their promises to pay him.