Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

California and Ontario Men Bilk Investors in $90m Investment Resort Scheme

Rancho Santa Fe Man and Alleged Co-Conspirator Charged with Defrauding Investors Out of More Than $90M in Resort Investment Scheme

James B. Catledge, of Rancho Santa Fe, California, and Derek F.C. Elliott, of Orangeville, Ontario, have been charged with fraudulently soliciting more than $90 million from investors. The men allegedly said the money would go toward building a resort in the Dominican Republic. Authorities, however, say renovations on the resort were never completed and the resort never opened.

According to the indictment, Catledge and Elliott purchased an old hotel in the Dominican Republic with a bank loan. Once they began renovations, they also began to solicit investments in the project. They raised approximately $91.3 million, according to authorities.

The indictment alleges that the men misled investors in their sales pitch. Specifically, Catledge and Elliott are accused of failing to tell investors that the hotel’s renovations were underfunded and that the promised returns could not be achieved. They also allegedly failed to mention that only about $13.4 million of the funds collected were being used for renovations on the resort. The men allegedly diverted the remainder to pay commissions and other payments, and for use on other projects.

Each man has been charged with one count of conspiracy to commit mail fraud and three counts of mail fraud. Each count carries a potential maximum penalty of 20 years in prison, as well as a substantial fine and an order of restitution. Catledge’s arraignment is scheduled for Oct. 5. Elliott’s arraignment has not yet been scheduled. For additional information, read the U.S. Attorney’s Office press release here.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram