FRESNO, Calif. — The grimy halls of justice were once again filled with the sound of justice being served as Seth Adam Depiano, a 36-year-old resident of Clovis, California, pleaded guilty today to an array of financial crimes that included mail fraud, wire fraud, and money laundering.
In what has been dubbed a colossal Ponzi scheme, Depiano is alleged to have conned investors out of approximately $24 million. His deceptive tactics involved promising investors returns on residential property investments he claimed to be purchasing with their funds. However, court documents reveal that many properties were never acquired or even existed.
Depiano’s lies extended beyond the non-existent properties; he also doctored documents to misrepresent occupancy rates, leading investors to believe they would see substantial rental income from properties he claimed to manage. The truth was far different, as Depiano used investor money for his personal indulgences, such as gambling and civil lawsuit settlements against him.
But the scheme’s unraveling did not stop there. Depiano also paid fabricated rental incomes to some investors using funds from other unsuspecting investors, a sickening twist that further depleted their savings.
In his plea agreement, Depiano admitted to defrauding 28 investors and agreed to pay restitution, forfeiting over $700,000 in cash and assets. The court awaits his sentencing on May 29, 2018, where he faces up to 20 years for mail fraud, ten years for money laundering, and a fine of $250,000.
The case against Depiano was the result of an intensive investigation by the Federal Bureau of Investigation, with Assistant U.S. Attorney Christopher D. Baker leading the prosecution.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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