The Securities and Exchange Commission announced fraud charges and an asset freeze to stop a continuing real estate investment scheme operated by three California businessmen, who allegedly stole investor funds after guaranteeing them “indestructible wealth.”
The SEC claims that Paul Ricky Mata, David Kayatta, and Mario Pincheira took investor cash to use as their own and also moved a portion of the cash to other businesses they owned. The group acquired over $14 million from more than a hundred investors from California as well as outside the state for two unregistered funds purportedly investing in real estate.
Mata posted videos on his website and YouTube to recruit investors to investment seminars called “Finances God’s Way” or “Indestructible Wealth.” At the seminars, the group urged the crowd to sell the securities they held at the time and invest in their funds, which promised high returns. In actuality, the funds were never profitable.
According to the SEC’s complaint, a website operated by Mata is advertising a three-day “Indestructible Wealth Bootcamp” in October in Los Angeles, prompting the SEC to act now to prevent others from being bilked. The court ordered asset-freeze prevents the trio from soliciting more investments or spending any more investor funds.
“We allege that under the guise of investment seminars with buoyant slogans, these men enticed investors into investing in purported real estate funds that are nothing more than piggy banks for their personal expenses and unrelated businesses,” stated Lorraine B. Echavarria, Associate Director of the SEC’s Los Angeles Regional Office.
The complaint states that Mata is an ex-licensed securities professional who has an “extensive disciplinary history” that was concealed from investors, who were only told of Mata’s “22 years of experience as a financial advisor.”
All three men charged their personal food, travel, entertainment and other items on Pincheira’s personal American Express Company card, and then stole investor funds to pay off the card balance, which often topped $40,000 a month.
If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.