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.


Send tips or a Letter to the Editor to samantha@inman.com or call (510) 658-9252, ext. 140.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription