Fraudulent Investment Scheme Unravels in New York Court
Derek Jones, a disbarred California attorney, has been sentenced to 5.5 years in prison for his role in a long-running multi-million-dollar investment fraud scheme. The scheme, which lasted over seven years, defrauded investors out of more than $8.6 million.
According to court documents, Jones deceived his victims into investing in various companies and investment funds that he controlled, including real-estate development and investment firms. He used glossy brochures and legal documents that contained misrepresentations about real estate to induce investors to put their money in his funds.
Jones’s scheme was elaborate, with him sending falsified and counterfeit documents to investors and others. He provided doctored bank statements and forged land-leases to make it appear as though his businesses were viable operations with real employees.
The scheme was uncovered when it was discovered that Jones had misappropriated investors’ money, using it to make Ponzi-style payments to other investors and for personal and family expenses, including the private-school tuition of his children.
Jones pleaded guilty to one count of wire fraud and was sentenced to 5.5 years in prison by United States District Judge Loretta A. Preska. The sentence was handed down on an unknown date in 2024.
Jones’s case highlights the importance of due diligence when investing in real-estate funds and other investment vehicles. It also serves as a reminder that those who engage in fraudulent activities will be held accountable for their actions.
Mandatory Facts:
Defendant: Derek Jones
Criminal Charges: Wire fraud
City and State: New York
Date: 2024 (sentence date unknown)
Sentence: 5.5 years in prison
Dollar Amount: $8.6 million
Related Federal Cases
- Kenneth Thom, Investment Fraud Scheme, New York 2024 · New York
- Trolice, $5M Wire Fraud, New York · Connecticut
- James Trolice, Mail and Wire Fraud, New York 2024 · Connecticut
- Nikhil Mahtani, Ticket Fraud, New York 2024 · New York
- Ameer Clark, Bank Fraud Conspiracy, New York 2024 · New York
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime