According to Santa Clara prosecutors, a San Jose man has pleaded guilty to operating a real estate investment scheme that ended up costing investors approximately $1.6 million. On Thursday, July 1, 2010, 34-year-old Reyes Alcaraz pleaded guilty to nine felony counts. The charges included grand theft and money laundering.According to the District Attorney’s office, Mr. Alcaraz ran his investment scheme from 2006 to 2009 and apparently took advantage of many Spanish-speaking investors. He allegedly promised high-returns to investors over short periods of time from a real estate investment program that focused on buying foreclosed residential real estate.During the elaborate scheme, Mr. Alcaraz allegedly defaulted on many of the contracts he had with investors. However, he still continued to raise money from other investors. The District Attorney’s office also reported that Mr. Alcaraz wrote bad checks to many of his investors. In addition, he has been accused of writing checks from accounts that had been closed.Mr. Alcaraz, who caused dozens of unsuspecting investors to lose approximately $1.6 million, is due to be sentenced on August 3, 2010. If he is found guilty, he could face up to seven years in a state prison.