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By 06/09/2021
Details of the largest financial crime in Marin’s history were revealed in a lawsuit filed last week by the Securities and Exchange Commission against the estate of Ken Casey, who operated a Ponzi-like scheme and stole more than $10 million until his death in May 2020. Mr. Casey’s two Novato-based companies, Professional Financial Investors and Professional Investors Security Fund, brought in hundreds of millions of dollars from more than 1,300 victims. Investors believed they were financing a part of 70 residential and commercial properties in the area; in reality, their money was being used to pay prior investors and line the pockets of Mr. Casey and his co-conspirator, Lewis Wallach. “Many of the investors were elderly, retired and relying on their investment income for daily living expenses,” attorney Bernard Smyth wrote. Several West Marin residents were snared in the scheme, and some were given a commission to bring in more
Lewis Wallach, 64, pleaded guilty to wire fraud and conspiracy to commit fraud
Wallach, CEO of Professional Financial Investors in California, admitted to swindling $26million out of investors between 2015-2020
Wallach used the money to buy Malibu home that once belonged to Judy Garland, luxury cars, and coin collection, and to pay private school tuition
Wallach admitted that he and firm s now-deceased founder knew company was not profitable and raised new investments to pay existing investors
Former Marin County real estate CEO pleads guilty to wire fraud
Bay City News Service
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On Sept. 29, Wallach was charged with allegations that he and the now-deceased founder of PFI ran the business as a Ponzi scheme.Getty Images
SAN FRANCISCO (BCN)
Lewis Wallach, the former CEO of Novato-based real estate firm Professional Financial Investors, pleaded guilty Wednesday to wire fraud and conspiracy to commit wire fraud in San Francisco federal court.
Wallach, 64, of Los Angeles, admitted to engaging in a scheme to embezzle $26 million from Professional Financial Investors (PFI) and a related entity, Professional Investors Security Fund (PISF), from 2015 until June 2020, according to the U.S. Attorney s Office. He admitted using some of the embezzled funds to make large investments, purchase real estate and pay for personal expenses.