OC Finance Bro Swindled Investors Out of $5.2M

Jacques Poujade, the owner of Lake Forest-based Tri-Emerald Financial Group, isn’t building a billion-dollar company – he’s building a federal case. The real estate finance operator pleaded guilty this week to fleecing an investor out of $5.2 million with lies about an impending IPO that existed only in his imagination. Poujade promised riches, delivered empty promises, and now faces up to two decades behind bars.

Between February 2015 and May 2020, Poujade peddled unregistered securities, falsely claiming Tri-Emerald was on the verge of going public on the Nasdaq. He bragged about securing investment banks as underwriters and projected a share price exceeding $100, all blatant fabrications. The victim, lured by the promise of quick profits, handed over a substantial sum, only to discover the whole operation was a carefully constructed con.

The money didn’t go towards preparing for an IPO, as Poujade claimed. Instead, it was siphoned off for Tri-Emerald’s operating costs, used to pay off earlier investors – a classic Ponzi scheme tactic – and, crucially, funneled into Poujade’s personal accounts. The feds say he pocketed a significant portion of the $5.255 million, living large on stolen funds. This wasn’t a one-time offense; Poujade also admitted to swindling another investor group out of $915,000 through fraudulent promissory notes issued by a separate company he owned, LendPlus Holdings.

Poujade’s scheme involved selling 30-day promissory notes, supposedly to boost Tri-Emerald’s warehouse line of credit. But instead of repaying the investors, he engaged in a continuous roll-over scheme, falsely assuring them their money was secure while diverting it to the same purposes: personal expenses, payoffs, and keeping the illusion of Tri-Emerald afloat. The operation was a house of cards, and the investor was left holding the debt.

The FBI and the Department of Housing and Urban Development’s Office of Inspector General brought the case, peeling back the layers of deception. Federal prosecutors, led by Special Assistant United States Attorney Ryan G. Adams, built a solid case based on financial records and evidence of Poujade’s deliberate misrepresentations. The SEC wasn’t fooled, and neither were the investigators who finally exposed the scheme.

Jacques Poujade will face sentencing on October 30th before United States District Judge Mark C. Scarsi. While a sentencing recommendation hasn’t been released, the statutory maximum of 20 years in federal prison looms large. This case serves as a harsh reminder that promises of quick riches are often too good to be true, and those who prey on investors will face the full weight of the law. Expect more details to emerge as the sentencing date approaches.

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