Real Estate Author Held in Alleged $13-Million Scheme
A self-proclaimed real estate investment expert who co-wrote a book called “One Up on Trump” was arrested Monday on 25 counts of mail fraud and money laundering after he allegedly bilked investors in a $13-million pyramid scheme, U.S. Atty. Nora M. Manella announced Monday.
Promising phenomenal returns on commercial real estate ventures, Stephen J. Murphy, 48, of Playa del Rey allegedly defrauded more than 200 investors through his company, American Capital Investments by means of a so-called Ponzi scheme, said Assistant U.S. Atty. Christopher Painter.
Murphy’s attorney, John Yzurdiaga, could not be reached for comment.
According to Painter, Murphy persuaded many of the investors to roll their supposed profits into new funds instead of collecting. Those who demanded their money were paid with funds from later investors, Painter said.
Murphy is also accused of failing to inform investors that his company was being invnestigated by the Securities and Exchange Commission for allegedly diverting funds to pay personal expenses and operating costs.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
