Man pleads guilty in First Latino case

By: DAVID STERRETT - Staff Writer | Wednesday, March 22, 2006 10:50 PM PST ∞

SAN DIEGO ---- The former chief operating officer of the now-defunct First Latino Group pleaded guilty Wednesday to five felony charges, including conspiracy to steal from investors in a home buying and investment program.

With the plea, Terry Samples faces up to three years and four months in prison and will be sentenced May 10.

Four other defendants accused of the same crimes ---- Rolando Montez, Franklin Ontiveros, Johnnie Mae Johnson and Jacob Miller ---- could not reach plea agreements Wednesday and will stand trial May 22.

A sixth defendant, Elias Gutierrez, is awaiting a trial set for April 10.

All of the defendants, except Gutierrez, appeared in court with their attorneys, but didn't speak and refused to answer any questions outside of the courtroom.

Deputy District Attorney Fiona Khalil said the leaders of First Latino, a Vista-based investment company, took more than $1.2 million from more than 100 investors in 2004, most of whom were Latino church members.

First Latino offered participants a 20 percent return on any investment and a program wherein investors could buy a home for an initial investment of $7,500. No homes were ever built, according to court records.

The district attorney's office and two state agencies launched investigations into First Latino in August 2004 after the North County Times reported complaints made by former company officials and investors.

On Wednesday, San Marcos resident Matilde de la Torres said she gave First Latino $2,000 a couple of years ago and still hasn't received any money back.

"Finally, there is a little justice," said Torres when told of Samples' guilty plea. "They definitely deserve to go to prison."

With the plea, Samples could be sentenced to as much as three years and four months in prison or as little as probation, said San Diego Superior Court Judge Howard Shore.

"I don't want you to go into this plea thinking you will get probation, and I want you to assume the plea will result in three years and four months in state prison," Shore told Samples during the hearing.

Samples, who was in a wheelchair and hooked up to an oxygen tank, replied to all the judge's questions with "Yes, your honor."

Deputy District Attorney Khalil said she had hoped Samples would face a stiffer punishment.

"I have great respect for the court," Khalil said. "But once the judge has the opportunity to hear all the evidence and from the numerous victims, he may have a different view."

She said Samples served as the chief operating officer for First Latino.

"Samples had intimate knowledge of what was going on," Khalil said. "He stood by silently as people handed over the money they had worked hard for when he knew the organization wouldn't deliver on its promises."

Samples knew about everything, but Montez and Ontiveros "organized the deception," Khalil said.

Montez's attorney told the judge that no plea had been reached and Brian Funk, the attorney for Ontiveros, said his client wouldn't plead guilty unless there was assurance he would get probation.

Khalil said that wasn't an option.

"They definitely deserve a substantial prison sentence," Khalil said, adding that the maximum the defendants other than Samples could get is 12 years, eight months.

She said Johnson and Miller were "less culpable."

The attorneys for Johnson and Miller said they couldn't reach agreements with the district attorney until Montez and Ontiveros agreed to pleas.

Khalil said she is going to prepare for a trial and that case would probably last about three weeks.

"This is going to be a long trial with many witnesses," Khalil said. "Hopefully in the end, the investors will get some money back."

Earlier this month, a developer who bought a property from First Latino reached an agreement with the court that could generate $1 million to repay investors.

Allen & Associates R.E.I., LLC, which is not connected to the charges against First Latino, plans to build eight single-family homes on the 3.1-acre lot in Vista that they bought from the group.

The district attorney's office will receive about $1 million from the proceeds to pay back investors under the agreement if all of the defendants plead guilty or are convicted.

Contact staff writer David Sterrett at (760) 761-4411 or dsterrett@nctimes.com.