May 9, 2014 - âI have no tolerance for those who prey on the vulnerable, especially seniors who lost their life saving
OFFICE OF JESUS RODRIGUEZ ASSISTANT DISTRICT ATTORNEY
COUNTY OF SAN DIEGO
San Diego 330 West Broadway San Diego, CA 92101 (619) 531-4040
BONNIE M. DUMANIS
http://www.SanDiegoDa.com
THE DISTRICT ATTORNEY DISTRICT ATTORNEY
May 9, 2014 For Immediate Release
Contact: Steve Walker, (619) 531-3890 Tanya Sierra, (619) 531-3315 En Español Jesse Navarro, (619) 531-3053
District Attorney Charges Four Who Scammed 28 Victims Out of $3 Million Senior Citizens Invested in Phony Investment Contracts San Diego County District Attorney Bonnie M. Dumanis announced charges today in a 105count criminal complaint against four defendants who swindled California investors -- many of them senior citizens -- out of more than $3 million through marketing phony investment contracts. The complaint charges Richard Provencio, 64, Carmen Provencio, 60, Julio Gomez, 43, and Carl Battie Hampton, 57, with multiple counts of securities fraud, elder fraud, residential burglary, and perjury. The complaint addresses their fraudulent dealings through companies called Masters of Retirement and American Equity Direct. The case stems from the defendants’ marketing and sale of a fraudulent investment product to 28 victims. “The defendants in this case were ruthless and heartless in the way they scammed their victims out of millions of dollars in phony investments,” DA Dumanis said. “I’m proud of the work our Insurance Fraud Unit is doing to bring justice to these victims, which include senior citizens who became victims of elder fraud and theft. We’re also encouraging any other potential victims to come forward.” Investors were guaranteed returns way above market (7% - 15%), they were told their principal was guaranteed safe, and were told a number of lies in order to get them to invest. The total amount of principal collected from victims in San Diego and Orange counties was nearly $3.1 million, all of which was lost. Richard Provencio and his wife Carmen, who ran the investment companies, were arrested on $750,000 warrants Tuesday, May 6, in Los Angeles and Orange counties, respectively. Investment salesman Julio Gomez was arrested Monday, May 5, in San Diego on a $750,000 warrant. Carl Battie Hampton was arrested on Thursday, May 8, in Georgia. This is a joint investigation involving the California Department of Insurance, the Federal Bureau of Investigation, and the San Diego County District Attorney’s Office. 1
“I find these crimes to be particularly appalling,” said Insurance Commissioner Dave Jones. “I have no tolerance for those who prey on the vulnerable, especially seniors who lost their life saving to these scammers and were left in a devastating financial hole. I am committed to working with district attorneys across the state to aggressively pursue and stop criminals who think to take advantage of consumers.” Arraignment dates for Carl Battie Hampton and the Provencios will be set after they are booked into jail in San Diego. Julio Gomez was arraigned on May 7. He remains in custody on $750,000 bail. He will next be in court on May 12. If convicted of all charges, Gomez faces up to 25 years in state prison. The remaining defendants face a maximum of 42 years. Deputy DA Michael Zachry is prosecuting this case.
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