Martin A. Pool, Securities and Money Laundering, UT, 2023

Two Investment Swindlers Face Heavy Penalties for Securities Fraud and Money Laundering

Martin A. Pool, 44, from Atlanta, Georgia, and Armand R. Franquelin, 57, of Liberty, Utah, were arraigned in federal court today for their roles in a massive investment scheme involving Haven Estates in Vernal, Utah.

Pool and Franquelin admitted to persuading investors to convert their IRAs into self-directed accounts, directing the funds to The Elva Group. They promised high-interest returns but failed to secure any real property or provide collateral for the loans, as they claimed. Instead, the funds were used for personal gain and Ponzi-like payments.

The duo faces restitution of $9,031,336.83, including victims of uncharged conduct, with over $500,000 invested by Alabamians alone. The scheme unraveled when Elva defaulted on the mortgage loan, leading to foreclosure of Haven Estates.

Both men pleaded guilty to securities fraud and money laundering counts. Sentencing is scheduled for Pool on July 31, 2014, and Franquelin on August 18, 2014, before U.S. District Judge Dale A. Kimball.

The investigation was a collaborative effort between the FBI, IRS-Criminal Investigation, Utah Department of Commerce’s Division of Securities, and Alabama Securities Commission, with Baldwin County District Attorney Hallie S. Dixon leading the local charge.