Lewis Wallach, Wire Fraud, California 2020

Former Marin County Real Estate CEO Admits to Defrauding Investors

SAN FRANCISCO – Lewis Wallach, the 64-year-old former CEO of Professional Financial Investors (PFI), a Marin County real estate company, pleaded guilty to wire fraud and conspiracy to commit wire fraud in a federal court on Wednesday. Wallach’s plea was accepted by the Hon. Maxine M. Chesney, U.S. District Judge.

According to the plea agreement, Wallach admitted to running PFI as a Ponzi scheme, defrauding investors of $26 million from 2015 until June 2020. The scheme involved lying to investors, including falsely telling them that PFI had significant reserves to survive and expand during the COVID-19 pandemic.

Wallach also admitted to embezzling funds from PFI and its related entity, Professional Investors Security Fund (PISF), taking more than $26 million for personal expenses, investments, and real estate purchases. He agreed to pay restitution of no less than $26.7 million as part of the plea deal.

The former CEO was charged with one count of wire fraud and one count of conspiracy to commit wire fraud in a criminal information filed on September 29, 2020. He pleaded guilty to both counts and faces a maximum statutory penalty of 20 years in prison, a fine of $250,000, and restitution.

Wallach is currently on pretrial release after posting a $500,000 bond. The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office, with the Federal Bureau of Investigation conducting the investigation.

The United States Attorney’s Office and the Federal Bureau of Investigation also thank the San Francisco Regional Office of the Securities and Exchange Commission for their assistance in the case.

Defendant: Lewis Wallach

Crime: Wire Fraud and Conspiracy to Commit Wire Fraud

City and State: SAN FRANCISCO, California

Date: Wednesday (no specific date mentioned)

Sentence: Pleaded guilty, awaiting sentencing

Dollar Amount: $26 million embezzled, $26.7 million restitution

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