SAN FRANCISCO – Grimy Times has learned that Michael Steven Banuelos, also known as Ferrari Mike, has been convicted of running a three-year investment fraud scheme that netted him over $2 million in false gains. The 42-year-old Chicago native pleaded guilty in federal court in San Francisco to twelve counts of wire fraud and one count of money laundering.
According to the investigation, Banuelos targeted several investors, including the business manager of a musical group, by falsely claiming he had arranged a concert tour and negotiated a multimillion-dollar contract with a major recording label. He produced phony documentation to support these claims, luring in additional investors who were promised high returns on their investments.
The investigation revealed that Banuelos spent the majority of the $2 million on personal expenses, including payments to his ex-wife, car payments, and a country club membership. After the music deal scam ended, he defrauded other individuals out of an additional $217,000 by claiming he was a successful money manager.
Banuelos was arrested on July 26, 2012, in Chicago and has remained in federal custody since his arrest. The sentencing of the defendant is scheduled for May 21, 2013, before Judge William H. Alsup in San Francisco.
The maximum statutory penalty for a violation of wire fraud is 20 years in prison, a fine of $250,000, plus restitution. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.
U.S. Attorney Melinda Haag announced the conviction, stating that Banuelos’s actions were a ‘serious breach of trust’ and that his sentence will serve as a reminder to others who engage in similar schemes.
Assistant U.S. Attorney Doug Sprague is prosecuting the case, with the assistance of Rayneisha Booth. The investigation is ongoing, and Grimy Times will continue to provide updates as more information becomes available.
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Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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