Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Science and Technology
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

San Diego Business Leader Gina Champion-Cain Sentenced to 15 Years for Massive Ponzi Scheme and Obstruction of Justice

% of readers think this story is Fact. Add your two cents.


SAN DIEGO – Gina Champion-Cain, a long-time San Diego business leader, restauranteur, and real estate magnate, was sentenced in federal court today to 15 years in prison for masterminding a massive, years-long Ponzi scheme and obstructing justice by hiding and destroying evidence from federal investigators. 

When she pleaded guilty on July 22, 2020, Champion-Cain admitted that she raised more than $350 million from investors by promising to use their money to make loans to business owners who were attempting to acquire California liquor licenses. The investors were unaware, however, that Champion-Cain was not keeping her promise. 

According to court records, Champion-Cain and her co-conspirators instead used funds from new investors to pay back others whose investments would soon be redeemed, and embezzled funds to support her other businesses and her lifestyle.  Champion-Cain and her co-conspirators kept the scheme going by, among other things, fabricating documents, forging signatures, and telling investors lies through fake email accounts so that when investors attempted to double-check on their investments with third parties, they were often really communicating with the defendant or her employees. 

In handing down the sentence, U.S. District Judge Larry Alan Burns told the defendant that her scheme demonstrated “tremendous callousness” and “extreme avarice” in committing a “monumental crime.”

“This is a fitting sentence for a defendant who caused significant harm to hundreds of victims,” said Acting U.S. Attorney Randy Grossman. “This Ponzi scheme cost investors hundreds of millions of dollars while the defendant lived in luxury. We will continue our aggressive efforts to prosecute those who swindle, deceive and bring financial devastation to victims.”

“For years, Gina Champion-Cain used her status in the community to lie, cheat, and steal more than a staggering $350 million dollars – all from investors who trusted her with their hard-earned money and, in many instances, their life’s savings,” said FBI Special Agent in Charge Suzanne Turner. “While the victims have suffered significantly from the defendant’s betrayal, we hope today’s sentence will bring some closure as they see Champion-Cain being held accountable for the damage she has caused. Let this serve as a warning that the FBI is dedicated to protecting the community from criminals, like Champion-Cain, who commit investment fraud.”

Crispin Torres, the former Chief Financial Officer of one of Champion-Cain’s companies, was sentenced on March 23, 2021 to four years in prison for using funds received from investors to prop up Champion-Cain’s other businesses.

Throughout her scheme, Champion-Cain made agreed-upon payments to her investors so that they would continue to believe that the supposed investment program was legitimate, according to court filings.  This, in turn, helped her perpetuate the scheme and recruit more victims. Champion-Cain also stole tens of millions of dollars of investor funds to keep her other businesses afloat and enrich herself.  Because many of Champion-Cain’s restaurant and retail businesses were failing or had negative cash flow, they needed funds to meet expenses. Time after time, Champion-Cain and Torres worked together to steal millions of dollars of investor funds to cover the shortfall. Champion-Cain also spent millions of investor dollars to pay for her own salary, box seats at professional baseball and football games, credit card bills, automobiles, jewelry, and other personal luxuries.

Champion-Cain’s plea agreement also describes her efforts to obstruct federal investigations into the scheme.  Beginning in July 2019, after learning of investigations being conducted by federal agencies, she instructed her employees to destroy emails; not produce electronic calendar, messaging, and trash files; alter accounting records to hide the fact that investor funds were used to pay her personal expenses; and shred paper records.  Champion-Cain even attempted to solicit an investment of $150 million in the hopes that she could use the funds to hide her scheme.  Despite her efforts, investigators were able to recover a significant volume of the evidence Champion-Cain attempted to destroy.

Grossman praised the lead prosecutors on the case, Assistant U.S. Attorneys Aaron Arnzen and Andrew Galvin, as well as investigators and attorneys from the Federal Bureau of Investigation and the Securities and Exchange Commission, for their excellent work on this case

DEFENDANTS                                            

Case Number 20CR2115-LAB                                           

Gina Champion-Cain                                     Age: 57                                   San Diego, CA

Case Number 20CR2114-LAB

Crispin Torres                                                 Age: 53                                   National City, CA

SUMMARY OF CHARGES

Securities Fraud, Title 15, U.S.C. Sections 77q and 77x (Champion-Cain)

Obstruction of Justice, Title 18, U.S.C. Section 1505 (Champion-Cain)

Conspiracy, Title 18, U.S.C. Section 371 (Champion-Cain and Torres)

AGENCY

Federal Bureau of Investigation



Source: http://criminal-justice-online-courses.blogspot.com/2021/03/san-diego-business-leader-gina-champion.html


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST


Order by Phone at 888-809-8385 or online at https://www.herbanomic.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.