Heading For the 5s?

Written by Jim the Realtor

July 29, 2011

Earl had this listed in the high-$600,000s, but after almost five months and no sale, the bank re-assigned it to another agent, and lowered the price.

Will having only 3 bedrooms, no yard, lots of stairs and backing to the street force the price down further?  Is this an example of how the general buyer malaise has more affect on the inferior properties?

4 Comments

  1. Jim the Realtor

    SAN DIEGO — A Jamul man who ran an investment business that federal prosecutors said was a Ponzi scheme that defrauded some 300 investors was sentenced to 10 years in prison Thursday.

    Matthew “Beau” La Madrid was also ordered to pay $23.4 million in restitution, a sum his lawyer said in court papers filed for the sentencing he had no chance of repaying in full.

    La Madrid pleaded guilty in January in U.S. District Court to conspiracy to commit mail, wire and bank fraud, and money laundering.

    The charges stemmed from the Plus Money investment business he ran, as well as a real estate business that obtained millions in fraudulent loans. Some of the proceeds from those loans were used to fund the investment scheme that federal prosecutors said was itself bogus.

    In all, La Madrid and several co-defendants solicited $39 million in funds from investors from 2004 to 2008. He said the money would be invested in a stock option trading program, and he promised returns of 2.5 percent to 6 percent per month.

    While some investors got returns, the scheme eventually collapsed as the stock market crashed in 2007. During that time, La Madrid produced bogus account statements for investors showing the funds were profitable and trades were going well.

    The net loss to all investors was about $12 million, according to a sentencing memorandum prosecutors prepared.

    Many investors were encouraged by La Madrid and others indicted in the case to refinance their homes using a real estate business he also controlled. Some 94 fraudulent loan applications were submitted to private lenders and banks, securing $34 million in loans.

    Investors were often steered toward loans that paid big commissions to La Madrid but were otherwise risky for borrowers. About $5 million of the loan proceeds to investors were put into the Ponzi scheme.

    La Madrid lived lavishly, buying fancy cars, jewelry and other items. He lived in a 7,000-square-foot home in Jamul.

    His lawyer, John Lemon, wrote in court papers that his client never intended to defraud investors. Instead, what started as a small investment club ballooned out of control and La Madrid got in over his head.

    His brother, Lance La Madrid, also pleaded guilty to wire fraud and is to be sentenced next week.

  2. shoppingaround

    Isn’t amazing how many of these stories try to show that the criminals had “no intent to defruad” but “things just got out of control” so, apparently, they simply “had to.” The state of moralality in these cases is sad, very sad.

    But thank heavens we are finally bringing these crimials to trial!

    Speaking of shady business, what ever happened to our buddy, Janae?

  3. Chuck Ponzi

    I think that (hole in kitchen) was once a wine fridge, not a trash compactor. Does anyone even buy those things anymore?

  4. Jakob

    Seems like a nice deal. Good size, should be a good price per sf comp for others.

Jim Klinge

Klinge Realty Group
Broker-Associate, Compass
Jim Klinge

Are you looking for an experienced agent to help you buy or sell a home?

Contact Jim the Realtor!

CA DRE #01527365, CA DRE #00873197

Pin It on Pinterest