The Securities and Exchange Commission has filed securities fraud charges in connection with an $18 million real estate investment scheme targeting blacks in the Los Angeles area, Nevada and Georgia.
The complaint, which was filed in U.S. District Court in Los Angeles, charged Jeanetta M. Standefor and her Pasadena, Calif.-based company, Accelerated Funding Group, with operating a “foreclosure reinstatement” scheme that attracted more than 600 investors between 2005 and 2007.
The SEC alleged that she and the company solicited investor money and promised returns of up to 50% within 30 to 45 days but instead operated a Ponzi-like scheme that used money from new investors to pay previous ones.
Ms. Standefor also used more than $1.9 million of investor funds for personal expenses such as her lavish wedding and honeymoon, cars, jewelry, tickets to entertainment events and home renovations, according to the complaint.
She and Accelerated Funding Group solicited investors in the black community through a now-defunct website, by word of mouth and through the use of testimonials by other seemingly successful black investors, according to the SEC's complaint.
The complaint seeks permanent injunctions, disgorgement of ill-gotten gains and civil penalties.
In a related action, the U.S. Attorney's Office for the Central District of California said that Ms. Standefor was arrested on criminal charges related to the Accelerated Funding Group offering and charged with 11 counts of wire fraud, mail fraud and money laundering.
If convicted of the criminal charges in the indictment, she faces a maximum sentence of 180 years in jail.
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