Newport Beach lawyer Gerald M. Shaw was indicted today on federal fraud and money laundering charges in an investment scam that brought in more than $1 million.
Shaw, 59, and Gregory De Lavalette, 51, of Rancho Santa Fe, were named in a 12-count indictment returned today by a federal grand jury in Santa Ana, a press release from the U.S. Attorney’s Office stated. The indictment said the two men solicited investments from victims – some of whom were clients of Shaw’s law practice – by falsely stating that the money would be used to trade European bank instruments. The defendants allegedly told victims that their money would be held as collateral, meaning that the investment was completely safe and promised rates of return as high as 40 percent a week. The victims were told that their money would be refunded within 30 days of a request. Shaw and De Lavalette never invested any of the victims’ money. Instead, Shaw and De Lavalette used the money for business and personal expenses.
If convicted, Shaw, who is charged with10 counts of wire fraud and two counts of money laundering, faces a maximum statutory penalty of 230 years in federal prison. De Lavalette, who is charged with three counts of wire fraud and one count of money laundering, could face a statutory maximum penalty of 70 years in federal prison.
How can progress on these kinds of court cases be monitored over time (particularly if convictions are made)?
Posted by: Mike I. | April 20, 2008 at 01:06 PM
Talk about deja vu all over again...
Posted by: | October 12, 2009 at 04:21 AM