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REGION: Woman gets prison for $1.8M fraud scheme
By TERI FIGUEROA - Staff Writer | ∞
SAN DIEGO ---- A woman who admitted she conspired to bilk at least 68 investors out of about $1.8 million with the two fraudulent investment programs she ran in Escondido was sentenced Thursday to more than four years in federal prison, prosecutors announced.
Clementine Estrada, 67, had been out on bail, but was taken into custody at the end of the hearing to begin serving a sentence of four years and two months, Assistant U.S. Attorney Steven Stone said.
A former North County resident, Estrada pleaded guilty in May to one count of conspiracy to commit mail and wire fraud.
From December 2001 to August 2004, Estrada formed and ran Crystal Rose Management, and later formed and ran Sterling Rose Management. Both companies were based in Escondido.
Estrada and co-conspirators lured investors by making "false, fraudulent and misleading representations," according to Estrada's plea agreement.
Estrada told investors that not only were they guaranteed the return of their principal investment, they could earn as much as 90 percent interest each month if they invested more than $50,000, according to Stone and federal court documents.
Investors also were told the money would be used to buy certificates of deposit, or CDs. But instead of buying CDs, Estrada lent some of the money to help others buy homes.
Also, money from Sterling Rose investors was used to pay investors with Crystal Rose, documents show.
Estrada has been ordered to pay $1.8 million in restitution to the victims, many of who are from North County, though that number may be adjusted at a hearing scheduled later this month.
Contact staff writer Teri Figueroa at (760) 740-5442 or tfigueroa@nctimes.com.
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