CALIFORNIA – California Attorney General Rob Bonta announced, July 14, the arrest of two individuals accused of defrauding victims out of over $1 million through fake pizza franchise and stock option investments.
Between 2020 and 2023, the defendants took money from investors who thought they were buying stock options or a Perfect Pizza franchise, according to the complaint.
The scheme misled inexperienced investors, including seniors and veterans, into believing they were becoming legitimate business owners or shareholders.
Victims invested between $5,000 and $150,000, totaling nearly $1 million. Within months, the defendants cut off and eventually ceased all communication with the victims.
After the pandemic, one defendant also took out $287,000 in small business loans that were never repaid.
White-collar crime enhancement for losses exceeding $500,000
The defendants were arraigned in San Diego Superior Court on multiple felony charges, including franchise and securities fraud, grand theft and a white collar crime enhancement for losses over $500,000.
“The white-collar crime scheme perpetrated by these defendants stole money from Californians who were attempting to become entrepreneurs or make investments into business,” said Bonta.
He added that the California Department of Justice won’t stand idly by if individuals cause financial harm to hardworking Californians to enrich themselves.
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