Federal prosecutors seem to be getting some results in their probe into real estate investment scam. Two more defendants have plead guilty to charges of conspiracy and mail fraud regarding real estate investment scam [1].

The eighth and ninth to enter guilty pleas to be entered were on behalf of brothers Matthew and Lance LaMadrid – 44 and 46 respectively. The two admitted that from 2004 to 2008 they operated Plus Money Premium Return Funds and other entities. The said entities have gotten at least $30 million from investors by providing false monthly statements showing profitable brokerage accounts. The funds from new investors were in actuality being used to pay debts from older investors.

The younger of the two also confessed to misrepresenting borrowers’ assets on loan applications. As a result of the fraud, millions of dollars were obtained by the younger LaMadrid’s entities. The elder, on the other hand, said his fraudulent activities caused around $400,000 to $1 million losses. April 4 is set for the brothers’ sentencing.

[1]http://www.sdbj.com/news/2011/jan/04/two-brothers-enter-guilty-pleas-real-estate-invest/