Seal Beach real estate agent John Wesley Martynec, who was arrested in August for allegedly stealing $302,000 from investors by fraudulently promising to buy and re-sell foreclosed homes for a profit, is scheduled to be arraigned in Westminster this morning.
The Long Beach 36-year-old is facing a laundry list of felony charges that could have him moving into a state prison cell for 30 years and eight months.
The sole owner of Samax Real Estate informed four investors--identified only as Patrick L. and Howard H., both 78, Howard H.'s son Michael H., and Chris L.--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 his partners, according to investigators, who added Martynec claimed it would start raining money within six months.
That didn't happen.
"The defendant is accused of telling these investors that he had 10 years of experience in buying and flipping foreclosed homes for a profit," reads an Orange County District Attorney's office statement. "Martynec is accused of receiving money from investors under the pretense that it would go towards buying distressed homes, but failing to purchase any property, contrary to what he promised his investors."
The salesman is accused of receiving various payments from the investors for different properties he showed them between August 2009 and August 2010. Deeds of trust, investment summaries and 1099 interest statements were shown to the investors, but all were falsified, according to the OCDA.
On Sept. 13, 2010, Michael H. questioned Martynec about the investment summaries he was receiving and discovered they were fabricated, say prosecutors. The Seal Beach Police Department was contacted shortly thereafter, and an investigation was launched.
If you like this story, consider signing up for our email newsletters.
SHOW ME HOW
You have successfully signed up for your selected newsletter(s) - please keep an eye on your mailbox, we're movin' in!
Martynec is charged with eight felony counts each of grand theft and selling securities in issuer transaction without qualification, six felony counts each of untrue statements in connection with a purchase or sale of securities and the use of a scheme to defraud and five felony counts of financial exploitation of an elder. In addition to the 33 charges, Martynec is facing multiple sentencing enhancements and allegations including loss over $100,000, property loss exceeding $200,000 and aggravated white collar crime over $100,000.
He's been out of custody for months after posting $150,000 bail. His continued arraignment is scheduled to begin at 9 a.m.