A man in Contra Costa County, Calif., was sentenced Thursday to four years in state prison for securities fraud, forgery and theft that involved 11 victims and their home equity.
David Steven Scott was serving a suspended sentence for securities fraud when he advertised that he could help individuals clean their credit through his company, Advanced Financial Solutions. Through his credit counseling, Scott obtained information about the amount of equity people had in their homes, and helped them obtain loans.
Scottt also convinced 11 victims in Contra Costa County to invest about $150,000 in a series of transactions involving trust deeds and promissory notes, according to the California Department of Corporations.
Scott did not disclose that he had a previous felony conviction for securities violations. He also misrepresented to his victims that they would earn up to 25 percent interest if they invested some of their loan proceeds with him, according to the Department of Corporations.
Scott is not licensed with the Department of Corporations to sell securities in California. He pleaded guilty to four counts of corporations code violations, two counts of business and professions code violations and four counts of penal code violations. The penal code violations included forging names on various documents and pocketing escrow proceeds that should have gone to a borrower.
Of the total 10 counts, eight are felonies and two misdemeanors.
The judge in the case also ordered Scott to pay various court fines and assessments and reserved the right to order restitution to the victims.
The Contra Costa County District Attorney’s office and the Department of Corporations prosecuted the case. The corporations department is responsible for the regulation, enforcement and licensing of such activities, including securities, franchises, independent escrows and residential mortgage lending.
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