Two Convicted of Defrauding Investors

Two owners of Cross Financial Services Inc., a defunct Irvine investment firm, were found guilty of defrauding 700 investors of $22 million by promising large returns on short-term business loans.

A federal jury in Los Angeles convicted Douglas S. Cross, 49, formerly of Laguna Niguel, and Owen R. Fox, 56, of Marina del Rey of conspiracy, securities fraud and international money laundering.

The two had promised 15%-to-20% returns on loans to companies doing business with the government and pledging payments from the government to secure the loans, court records said.

Instead, they used some of the money on their lavish lifestyle, according to FBI testimony.

U.S. District Judge Consuelo Marshall scheduled sentencing for Aug. 6.