SANTA ANA, Calif.
Federal prosecutors charged Todd Douglas Mulliner, 61, with allegedly running a Ponzi scheme that allegedly duped relatives and acquaintances into investing in a fake stock options fund, then used their money to cover personal expenses — including an attempted purchase of beachfront property, officials announced Friday.
Mulliner surrendered Thursday a in U.S. District Court in Santa Ana.
Mulliner is presumed innocent unless proven guilty.
According to the nine-count indictment, Mulliner claimed from July 2018 through March 2021 that he was an expert trader operating DauVC1, an Irvine-based company promising steady weekly profits and low risk. Prosecutors say those claims were false. Most investor funds were either lost in trading or diverted to repay earlier investors, a hallmark of a Ponzi scheme.
Authorities allege Mulliner persuaded victims — often family members, friends, and acquaintances — to buy shares in his company, sometimes using retirement savings. He allegedly sent fabricated account statements showing positive returns to attract new investors and prevent withdrawals.
Prosecutors also say Mulliner concealed a prior felony securities fraud conviction and used investor money to pay family members and pursue coastal real estate.
At least six victims lost approximately $290,000, authorities said.
In a separate allegation, Mulliner is accused of stealing an $8,400 COVID-19 stimulus check in April 2021 and forging two victims’ signatures before depositing it.
He faces charges including wire fraud, mail fraud, bank fraud, money laundering, and aggravated identity theft. If convicted, Mulliner could receive a sentence totaling decades in federal prison.
The investigation was conducted by the FBI.
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