SANTA ANA, California
An Orange County man on Monday was sentenced to three years and 10 months in prison for running a program that purported to offer short-term loans, officials stated.
The was nothing more than an investment scam that caused more than $3 million in losses to victims.
U.S. District Judge David O. Carter sentenced J. Michael Clancy, 58, of Rancho Santa Margarita, officials stated.
Carter also ordered him to pay $3,003,084 in restitution.
Clancy pleaded guilty in March 2019 to single-count information charging him with wire fraud, officials stated.
From July 2014 until July 2016, Clancy operated Multiplied Equities and Quantum Capital California LP, both located in Lake Forest, which he claimed offered short-term loans secured by real estate.
Clancy sold partnership interests to investors, telling them their funds would be used to make short-term loans,
Clancy further promised to sell the loans to outside investors, which would earn profits for his victims and free up funds to make additional short-term loans.
Instead of using his victims’ funds as promised, Clancy used the money to operate a house-flipping scheme, purchase a personal residence in Silverado Canyon, pay family members, and make “interest” payments to earlier investors in the scheme, according to federal authorities.
In total, 11 victims lost $3 million as a result of the scheme.
This matter was investigated by the FBI.