Roseville Wealth Advisor Sentenced to 12 Years in Prison for Investment Fraud Scheme

[nitpicker]

https://www.justice.gov/usao-edca/pr/roseville-wealth-advisor-sentenced-12-years-prison-investment-fraud-scheme

Department of Justice
U.S. Attorney’s Office
Eastern District of California

FOR IMMEDIATE RELEASE
Tuesday, February 6, 2018

Roseville Wealth Advisor Sentenced to 12 Years in Prison for Investment Fraud Scheme

SACRAMENTO, Calif. — Lee Loomis, aka Lawrence Leland Loomis, 60, of Granite Bay, was sentenced today by U.S. District Judge John A. Mendez to 12 years in prison for schemes that caused millions of dollars in losses to more than 183 investors, U.S. Attorney McGregor W. Scott announced.

On January 29, 2016, Loomis pleaded guilty to wire fraud. According to court documents, from 2006 through 2008, Loomis was president of Loomis Wealth Solutions, a business operating in California, Illinois, Washington and elsewhere. Through seminars and face-to-face meetings, he induced individuals to invest money in the Naras Funds, which he claimed were liquid savings account-like investments that yielded a 12 percent annual return. He also claimed the investment was secured by a third party that was using the money to make loans secured by residential properties.

In fact, Loomis and his co‑defendants used the funds to pay for ongoing business expenses and to pay previous investors. Loomis took in more than $10 million in investor funds as part of the Naras scheme. He also took in money through other means, including a mortgage fraud scheme. At the time law enforcement executed search warrants at the business, only $4,313 was left in investor accounts.
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