Former investment advisor Joseph Randall Medcalf, 56, of Fresno, CA pled guilty this week to three counts of mail fraud and one count of bankruptcy fraud. The counts stem from an investment scheme Medcalf ran for several years defrauding investors out of millions through offered investment “opportunities.”
When Medcalf pled guilty he admitted he carried out an investment scheme to defraud investors during May 2002 through October 2007. He offered investors an opportunity to invest in several entities he controlled including All Valley Holdings LLC and CenCal Value Investments to name a few. These entities were not registered with government entities or the Securities and Exchange Commission. Medcalf persuaded investors to move their legitimate secured investments to him.
There were times where the investments were nonexistent or failing; meaning Medcalf may not have even invested funds he received. He may have claimed to have paid “returns” to investors, but otherwise he kept the money for himself. Medcalf marketed the investment scheme as a safe opportunity; claiming investors would earn interest rates between 6 and 8 percent.
There were promissory notes and agreements drawn up but they were not authorized by a government entity. Scammed investors were encouraged to rollover their investments to keep them from learning the investment deal was a scheme. Medcalf defrauded investors out of more than $3 million.
During this time he filed for bankruptcy protection, but failed to disclose investments with All Valley Holdings LLC and CenCal Value Investments to try and hid the scheme. His sentencing is scheduled for May 2013 with a possible six-and-a-half year prison term as part of a plea agreement.
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