Swindler Sentenced in Friars Club Scam

A Woodland Hills man who ripped off friends and fellow members of the Friars Club in a multimillion-dollar investment swindle was sentenced Tuesday to four years in prison, but he remains free for now.

Joel Burakoff, 57, who in May admitted in Los Angeles County Superior Court that he stole from clients in a scheme that triggered the 1995 collapse of Gardena-based Univest Home Loan, still faces a federal investigation of the scandal.

Superior Court Judge Terry A. Green stayed the sentence for 90 days. Burakoff, described by many of his victims as a dear, devoted friend, remains free on his own recognizance.

Prosecutors did not object.

“He did the crime and now he’s going to do the time,” said Deputy Dist. Atty. Thomas R. Wenke, who prosecuted the case. “His time on the outside is short.”

The outgoing, curly-haired Burakoff was convicted of persuading wealthy acquaintances to invest in Univest by promising them large returns on high-interest, inner-city real estate and business loans, then failing to repay investors after the loans were paid off.

Many of the victims, who commonly lost $50,000 or more, were Burakoff’s friends or knew him through the Friars Club of Beverly Hills, where he had been a member of the board of directors.

Lawyers said the victims included singer Tony Martin and his wife, dancer and actress Cyd Charisse; Irwin Schaeffer, a North Hollywood businessman; and Jesse White, who played the lonely Maytag repairman on television commercials.

In addition, Burakoff, who was chairman and treasurer of Univest, is under federal investigation on suspicion of engaging in fraudulent dealings with a Beverly Hills bank. He allegedly diverted investors’ funds to an account he controlled.

Although Burakoff maintained that he was not guilty after he surrendered to authorities in January, he changed his plea in May as part of an agreement with prosecutors.

The deal, which included Burakoff’s plea of guilty to four felony counts of grand theft, called for him to serve four years in prison. Although broke, his responsibility for restitution covers future income.

Authorities said the case against Burakoff stemmed from allegations from Univest investors who reported losing more than $500,000 during the past several years. Since Univest was placed under receivership nearly two years ago, investors and others have filed more than 300 claims seeking more than $16 million.

But authorities also said the case was complicated because some losses were due to illegal activity, while others were caused by unwise, but legal, investments.

Authorities said Burakoff, who had no prior record, faces a prison term that is in line with similar white-collar cases.

Wenke and Burakoff’s lawyer, George Buehler, said Tuesday that they expect federal authorities to agree to terms similar to those accepted by state prosecutors.

Thom Mrozek, a spokesman for the U.S. attorney’s office, declined to provide details about the Burakoff case. Prosecutors expect to try to find a resolution over the next 90 days, he said.

“I will confirm that plea negotiations are ongoing,” Mrozek said. “Discussions are underway.”

Buehler said federal charges and any disposition are pending.

“That’s all in the works,” Buehler said. “He’s out on his own recognizance, and eventually he’ll be serving some time.”

Buehler said he believes his client had apologized to at least some of his victims.

“He’s doing OK,” Buehler said. “I think he has [apologized] to some people he knows. That’s up to him.”