Carlsbad police probe case of suspected $1 million in financial fraud

November 6, 9:04 AMSan Diego Crime ExaminerSteve Perez

Previous Next

Comment Print Email RSS Subscribe

Subscribe

Get alerts when there is a new article from the San Diego Crime Examiner. Read Examiner.com's terms of use.

Email Address   Include other special offers from Examiner.com Terms of Use

Carlsbad police

say it's a classic of case demonstrating an old adage: "If it sounds too good to be true, it probably is."

In this instance, the case involves two men suspected of defrauding Spanish-speaking investors beginning as far back as 2001 for promising investment returns of up to 25 percent.

Police arrested the suspects Alan Flores Espiritu, 35, and Cesar A. Moreno, 40, on Tuesday. By Thursday afternoon, both were in a county courtroom to answer charges they they defrauded at least 25 people of more than $1.2 million dollars.

The suspects, who gained the confidence of their victims by befriending them and becoming involved socially with their families, told victims their "development" company, Permex, guaranteed high investment returns.

The victims not only received nothing, police spokeswoman Lynn Diamond said, but lost their money.

Some were encouraged to stop making their house payments under the guise of "loan modifications" and pay Permex instead.

In those cases, authorities said, the victims lost not only their cash, but their homes as well.

“What makes this case so awful is that Espiritu and Moreno preyed on a vulnerable group of hard-working people who lived frugal lives, saving every dollar they could,” said Carlsbad detective Patty Parra, lead investigator.

At the moment, investigators have found victims in such San Diego County communities as Fallbrook, Valley Center, and Chula Vista, as well as other Southern California locations such as Temecula and the San Fernando Valley.

Espiritu and Moreno are charged with numerous grand theft and security fraud violations, Diamond said. Both are in county jail with bail set at $1 million each. Further court appearances are set for next week.

Now, authorities are investigating to see if there are more victims.

Anyone who has lost money in their dealings with Permex or either of the suspects is asked to call Carlsbad Police Department at 760-931-2294.

Worth noting: In the current economic environment, anyone promising you such terrific returns on your hard-earned cash deserves a very hard second look by any number of well regarded and state-licensed financial professionals.

With public information so readily available now online, it's easy to check to see if any complaints have been lodged against financial professionals ranging from accountants to real estate agents.