SANTA ANA
A Hawaii man was sentenced to four years in federal prison for defrauding a 79-year-old Orange County man out of nearly $2 million through a years-long scheme involving a yacht sale scam and fraudulent loans that ultimately left the victim homeless, according to officials
U.S. District Judge Fred W. Slaughter stated John Tamahere McCabe, 42, of Kailua. The judge also ordered McCabe to pay $1.814 million in restitution.
From July 2017 through January 2024, officials stated that McCabe exploited the victim by offering to broker the sale of the victim’s yacht and promising to transfer the proceeds.
Instead, McCabe used fabricated documents to transfer ownership of the yacht to himself, sold it, and deposited the proceeds into his own bank account for personal use.
McCabe also persuaded the victim to transfer his Irvine condominium—worth about $1 million—into a limited liability company McCabe controlled, falsely claiming the move would protect the property and provide tax benefits.
Without the victim’s knowledge or consent, McCabe made himself the sole manager of the LLC and secured $1 million in loans against the residence, draining all of its equity.
After spending most of the loan proceeds, McCabe defaulted. The property was foreclosed, leaving the victim homeless.
The FBI investigated the case with assistance from the Irvine Police Department.