Gerald Lee Kelly, of Gilbert, Arizona has been indicted on 25 counts related to an alleged real estate investment fraud scheme, including counts of wire fraud, mail fraud, and money laundering. According to court documents, at least eight investors were affected by the alleged investment scam, and they lost a total of approximately $855,000 in the deal. The arraignment is scheduled to take place later this month on January 25th.
According to the allegations, Kelly, through his company Cornerstone Financial Holdings, lured in investors with high returns of 18% to 25% on distressed homeowner loans. He allegedly claimed that investors could make these high returns in a short period of time, and he also claimed that the investments were allegedly secured. Prosecutors say that Kelly was aware that the company had hit hard financial times, and that he knew that the so-called security provided to investors was seriously lacking.
Investors should consider investment fraud cases like these carefully and take them as warnings. No matter what kind of investment you are offered, do your research. Any investment opportunity that claims to offer “no risk” and abnormally high returns should be approached with extreme caution.