Michael Steven Banuelos, Investment Fraud, California 2012

Investment Scam Unfolds in California: A Chicago Man's Downfall

Michael Steven Banuelos, a 42-year-old Chicago resident, has been sentenced to 6 ½ years in federal prison for running an investment fraud scheme that defrauded investors out of approximately $2.6 million.

Banuelos, also known as Ferrari Mike, was sentenced yesterday to 78 months in federal prison, announced United States Attorney Haag.

According to the investigation, Banuelos falsely claimed to be a successful promoter in the music industry with ties to various well-known recording stars. He lied to the business manager of a musical group, claiming that he had arranged a concert tour during which the group would be the opening act for one of the well-known stars.

Banuelos used false statements and phony documents to lure in additional investors in this purported music deal and non-existent deals regarding other musical artists. Several of the investors in these purported deals lived in the Bay Area.

Of the approximately $2.6 million dollars he obtained through this scheme, Banuelos spent the overwhelming majority of it on personal expenses, including payments to one of his ex-wives, car payments, and a country club membership and dues.

As his music deal scam was coming to a close, Banuelos defrauded additional individuals out of another $200,000 by falsely claiming to be a successful money manager.

Banuelos was indicted by a federal grand jury on July 12, 2012, and charged with twelve counts of wire fraud and one count of money laundering. He was arrested on July 26, 2012, in Chicago, where he had lived for the preceding few months.

Banuelos has remained in federal custody since his arrest. On February 26, 2013, he pleaded guilty to one count of wire fraud.

The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.

Source: https://www.justice.gov/usao-ndca/pr/chicago-man-sentenced-78-months-prison-running-investment-fraud-scheme