SACRAMENTO, Calif. – Lee Loomis, 60, of Granite Bay, is headed to federal prison for a decade and a half after being sentenced to 12 years for orchestrating a multi-million dollar investment fraud. U.S. District Judge John A. Mendez handed down the sentence today, bringing a degree of closure to the more than 183 investors who fell victim to Loomis’s deceit, announced U.S. Attorney McGregor W. Scott.
The scheme, operating from 2006 through 2008 under the banner of Loomis Wealth Solutions, promised investors a guaranteed 12 percent annual return on their money through the Naras Funds. Loomis pitched these funds as safe, savings account-like investments, falsely claiming they were backed by loans secured by residential properties. He aggressively recruited investors through seminars and one-on-one meetings, building a web of trust based on lies.
But the reality was far darker. Court documents reveal Loomis and his co-defendants weren’t investing the money, they were spending it. The $10 million-plus in funds collected from unsuspecting investors was siphoned off to cover business expenses and, most damningly, to pay earlier investors – a classic hallmark of a Ponzi scheme. When federal investigators finally executed search warrants at Loomis Wealth Solutions, they found a paltry $4,313 remaining in investor accounts. The vast majority of the money had vanished.
“Loomis Wealth Solutions was built on a foundation of lies and deceit,” Scott stated bluntly. “This sentence ensures Loomis won’t be able to repeat his crimes and provides some justice for the victims who trusted him with their life savings.” The FBI’s Sean Ragan, Special Agent in Charge of the Sacramento Field Office, underscored the devastation caused, noting many victims had drained their retirement accounts, effectively forcing them to restart their financial planning from scratch.
IRS Criminal Investigation’s Michael T. Batdorf added, “Lee Loomis was the leader and architect of a scheme that resulted in millions of dollars of losses to dozens of families. He lied to investors, stole their hard-earned savings, and spent it within months of receipt. His conduct led to ruined credit and home foreclosures.” The investigation was a collaborative effort involving the FBI, IRS-CI, the Securities and Exchange Commission, and the California Bureau of Real Estate.
Loomis has been in custody since September 14, 2012, awaiting sentencing. He isn’t the only one facing consequences. Co-defendants John Hagener, 79, of Granite Bay; Joseph Gekko, 47, of Yorba Linda; Dawn C. Powers, 45, of Lincoln; and Peter Woodard, 47, of Ventura, have all pleaded guilty and are scheduled for sentencing on March 13, 2018. Assistant U.S. Attorneys Paul Hemesath and Jared Dolan prosecuted the case, determined to hold the perpetrators accountable for their callous disregard for the financial well-being of their victims.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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