In the wake of national headlines showcasing the multi-billion dollar Bernie Madhoff ponzi scheme, a man from Orange has been arrested for allegedly running a similar scandal.
Joseph Anthony Veltre, 67, was arrested May 4 by Newport Beach and Costa Mesa detectives, and charged with embezzlement and identity theft.
Police believe Veltre defrauded several “hard money” investors during a seven-year period beginning in 2002 by selling them bogus “second” trust deeds.
According to prosecutors, Veltre would first solicit loans from private investors, the investors believing he would then loan the money to homeowners that wanted non-bank loans. Instead Veltre would keep the money for himself and make payments back to other investors in a “Ponzi” like scheme.
Authorities suspect Veltre to also be behind a variety of other financial crimes. He is scheduled to be arraigned May 22 on 62 felony counts with many enhancements that assert he lied and cheated $2.5 million dollars from the pockets of victims.
Business names Veltre used for the scam included “Allied Corporate Investments” and “Sea View Financial Center.” Addresses for both businesses are reportedly in the cities of Tustin and Orange.
Veltre was booked into Newport Beach jail with bail set at $2 million.
Police encourage anyone that believes they may have been a victim of Veltre’s to please call Newport Beach Police Economic Crimes Detective Steve Rasmussen at (949) 644-3763, or (800) 550-NBPD.