San Diego Accountant Sentenced to 63 Months for $8.2 Million ADU Investment Fraud
The U.S. Attorney's Office for the Southern District of California announced that Ethan Joseph Sanchez, of San Diego, in San Diego County, California, was sentenced in federal court to 63 months in prison for orchestrating a fraud scheme in which he stole over $8.2 million from victims by tricking them into investing in bogus plans to build accessory dwelling units.
U.S. District Judge Robert S. Huie also ordered Sanchez to forfeit over $8.2 million and to pay restitution to victims. Sanchez is 30 years old and was a Certified Public Accountant during the scheme.
According to the Justice Department, Sanchez admitted in his plea agreement to lying to victims repeatedly to convince them to loan money to him and his business entity, BSC Equity Ventures, LLC. His lies included that victims' money would be used to fund real estate transactions, like building accessory dwelling units (ADUs) on specified properties, and that he would promptly return both principal and interest.
In fact, Sanchez did not fund any real estate transactions or build any ADUs, rarely returned any money, and instead lost the money via risky day trades. Several victims spoke at the sentencing hearing, and one said: 'He was caught by the FBI, thank God.'
In imposing sentence, Judge Huie noted that Sanchez's scheme was 'aggravated and reprehensible,' and that Sanchez used victims to recruit other victims, sometimes their own family members. U.S. Attorney Adam Gordon said Sanchez exploited the trust of hardworking people and stole their savings through lies and fabricated investments, and that the sentence reflects the profound harm he caused.
The FBI investigated the case. Assistant U.S. Attorney Eric R. Olah is prosecuting it, with prior assistance from Assistant U.S. Attorney Sarah Akhtar. The charges in case number 25-cr-04062 include wire fraud and money laundering.
Source: GSM · USA (original Chinese edition)
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