Investors’ Profits From Alleged Scam Sought

About 400 people who invested with jailed Orange County money manager James P. Lewis will be asked to give up their profits, according to a report released Monday.

The report by Robb Evans & Associates, which is the court-appointed receiver of Lewis’ business, said the 400 people gained more than they lost by investing with Lewis.

Authorities say thousands of other investors, however, lost money with Lewis and his company, Financial Advisory Consultants.

Lewis was charged in U.S. District Court in Santa Ana last year with 14 counts of mail fraud and money laundering, and his company was subsequently seized by authorities.

Lewis pleaded not guilty to the charges, but remains in custody.

The court-appointed receiver is now trying to sort out what happened to an estimated $312 million in investor money.

The report released Monday, which followed two previous reports, noted that in addition to losing $35.5 million in unprofitable businesses and commodities trades, Lewis gave about $5 million to his ex-wife and nearly $5 million to each of two former girlfriends and their families.

Lewis’ ex-wife has reached an agreement with the receiver to hand over several properties she owns and one girlfriend, Blakney Boggs, agreed to sell the house she owned with Lewis.

The receiver also has negotiated about $2 million in settlements from so-called winning investors, according to the new report.

-- Kathy M. Kristof