Walnut Creek real estate investor charged with fraud

Federal authorities allege man defrauded private investors in home-flipping business between October 2002 and June 2010

A federal jury in Oakland indicted a Walnut Creek real estate investor for fraud last week, a U.S. attorney said.

Benny Chetcuti Jr. was indicted Thursday on two counts of wire fraud stemming from his real estate business, U.S. Attorney for Northern California Melinda Haag said.

The prosecution is the result of an investigation by the Federal Bureau of Investigation.

The indictment alleges that Chetcuti defrauded private investors who loaned money to him for his business between October 2002 and June 2010, according to Haag.

The federal attorney said that Chetcuti's business of purchasing homes, renovating them and then selling them to new owners, began in 1998.

In order to finance his home-flipping business, Chetcuti obtained loans from private investors in exchange for promissory notes.

However, the indictment alleges that the defendant defrauded investors by misrepresenting how much debt was secured by the properties and failed to record deeds of trust that would have secured investors' interests in the properties, according to Haag.

Additionally, Chetcuti was indicted for directing others to impersonate lenders in phone calls and forging letters purportedly written by lenders, Haag said.

Chetcuti has been summoned to make his initial court appearance at 9:30 a.m. on Wednesday, before Judge Kandis A. Westmore, Haag said.

The maximum penalty for each count of wire fraud violation is 20 years imprisonment and a fine of $250,000 or twice the gross loss or gain resulting from the offenses, plus restitution and forfeiture, if appropriate, according to the U.S. attorney.

— Bay City News Service


 +   Like this comment
Posted by good girl
a resident of Los Cerros Middle School
on Apr 1, 2014 at 1:09 am

[Post removed due to disrespectful comment and offensive language]

 +   Like this comment
Posted by Julia
a resident of Alamo
on Apr 2, 2014 at 10:42 am

American Greed surfacing in Walnut where is safe greedy from folks just wanting more and more...Put the SOB away for a long time and all other like him/her.

Thanks for listening, Julia Pardini from Alamo

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