​NEWS RELEASE

FROM:
Amy Cornell, Public Information Officer   CONTACT PERSON:
Amy Cornell, Public Information Officer
(408) 792-2997   For release on July 2, 2010     SAN JOSE MAN PLEADS GUILTY TO CHARGES RELATED TO ILLEGAL INVESTMENT SCHEME   On July 1, 2010, 34-year old Reyes Alcaraz of San Jose pleaded guilty in Santa Clara County Superior Court to nine felony charges related to an unlawful investment scheme that he operated from 2006 to 2009. Doing business under the name Safe Recovery, Alcaraz approached potential investors, many of whom were Spanish-speaking immigrants, about investing their money in a scheme allegedly for rescuing residential real estate properties from foreclosure. In the investment contracts he signed with the investors, he promised high rates of return over short terms. Alcaraz defaulted on many of the investment contracts. Nevertheless, he continued to solicit and to obtain money from other investors. He wrote insufficient funds checks to some investors; to others, he wrote checks drawn on closed accounts. It is estimated that the total loss suffered by the more than 40 investors is approximately $1.6 million.   Alcaraz pleaded guilty to one count of Grand Theft, one count of Selling an Unqualified Security, one count of Misrepresentation or Omission of Material Fact in the Sale of a Security, five counts of Insufficient Funds Check, and one count of Money Laundering. On August 3, he will be sentenced to a term of seven years in the state prison.   This case was jointly investigated by the San Jose Police Department, the Santa Clara County District Attorney’s Office, and the California Franchise Tax Board.   ###