Seal Beach real estate agent John Wesley Martynec pleaded guilty last week to to stealing $302,000 from investors who thought he was buying and re-selling foreclosed homes for them.
The Long Beach 36-year-old faces up to three years in state prison at his scheduled June 8 sentencing.
Martynec, the sole owner of Samax Real Estate, informed four investors that he would pool their cash to buy foreclosed fixer-uppers in Los Angeles County, have them renovated, re-sell the homes at mark-ups and divvy up the profits with them. Don't worry, he assured his marks, who included two 78-year-old gents, he had 10 years of experience in buying and flipping foreclosed homes for a profit--and he'd have it raining money within six months.
He received various payments from the investors for different properties he showed them between August 2009 and August 2010. He also whipped out deeds of trust, investment summaries and 1099 interest statements--all of which were as phony baloney as he was.
Raining money? Ha! Must've been a drought year. When one investor questioned Martynec in September 2010 about investment summaries the agent was sending out, the mark put two and two together and figured out something wasn't adding up. A call was placed to the Seal Beach Police Department, and the scam unraveled from there.
Martynec pleaded guilty Friday to two felony counts of grand theft, one felony count of untrue statements in connection with a purchase or sale of securities and use of a fraudulent scheme, one felony count of financial exploitation of an elder, with a sentencing enhancement for property loss more than $200,000.
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