Daily Journal masthead

Southern California real estate investor convicted in $169 million fraud scheme

bug
Share/Save/Bookmark

SANTA ANA, California — A Southern California real estate investor has been convicted of a fraud scheme that cost investors as much as $169 million.

Michael Stewart was convicted Friday of 11 mail fraud counts. He could face up to 220 years in federal prison.

The 68-year-old San Clemente man owned Pacific Property Assets, which bought, rented, refinanced and resold apartment buildings in Southern California and Arizona.

Prosecutors says rising real estate values kept the firm afloat for a decade until 2007, when the market began to slow and credit became scarce.

Authorities say to cover its debts, the company raised money from new investors — many retirees — to pay off the old ones.

Eventually, the company went bankrupt.

Co-owner John Packard pleaded guilty to mail fraud last year and awaits sentencing.

Think your friends should see this? Share it with them!

Story copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


We also have more stories about:
(click the phrases to see a list)

Category:

Follow Daily Journal:

All content copyright ©2015 Daily Journal, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.