VISTA -- Nearly two years after promises of homes and large returns gave way to arrests and criminal charges, four people involved with the now-defunct investment firm of First Latino Group in Vista will soon face a jury.

Jury selection is scheduled to begin Tuesday in San Diego Superior Court in the case of Rolando Montez, 51, of Vista, who founded First Latino in 2002; Franklin Ontiveros, 43, of Oceanside; Johnnie Mae Johnson, 57, of Vista; and Jacob Miller, 75, of Bonsall.

They were among five people indicted in December 2004 on five felony conspiracy charges each in connection with the home buying and investment programs that First Latino offered primarily to Latino church members. All four have pleaded not guilty to the charges.

The fifth indicted suspect, Terry Samples, 47, the former chief operating officer of First Latino, pleaded guilty in March to five felony charges and was sentenced in May to three years and four months in state prison.

When Samples pleaded guilty, Deputy District Attorney Fiona Khalil said the other four defendants could face up to 12 years and eight months in prison if convicted.

Khalil declined recently to comment on key issues likely to be raised during the impending trial.

Montez's defense attorney, Dianna Davis, declined to comment on the case in detail, but said Montez "didn't intend to defraud anyone."

"I think the evidence that will be presented will establish that," Davis said.

Miller's attorney, Herb Weston, said Miller was not involved with First Latino's home buying and investment programs.

Defense attorneys for Ontiveros and Johnson could not be reached for comment.

The district attorney's office and two state agencies launched investigations of First Latino in August 2004 after reports in the North County Times in which investors and former company officials raised allegations of problems with First Latino's programs.

Prosecutors have alleged in court documents that First Latino offered a program through which an initial investment of $7,500 was supposed to get a buyer a house that the buyer would refinance in six months.

First Latino was to use the refinancing money to help build more homes and to pay off part of its new mortgages, prosecutors have alleged.

First Latino also offered an investment program that purported to provide a 20 percent return on the invested money, prosecutors have alleged.

In all, First Latino received about $1.4 million from 2002 to 2004, but provided no homes and did not pay investors the promised returns, prosecutors have alleged. Some money has been repaid to investors, but others are still waiting.

A document filed with the court, dated Aug. 1, 2005, and identified as a "restitution accounting," names 92 First Latino investors who still are owed a total of $1,068,783.80 for the money they invested. The district attorney's office said in a separate document that Montez's former attorney filed that restitution document, and that the district attorney's office accepts it as an accounting of the losses in the First Latino case.

Khalil said in March that Montez and Ontiveros "organized the deception," that Samples knew about everything that was going on at First Latino, and that Johnson and Miller were "less culpable."

Montez's former attorney, Frederick McClelland, wrote in a document filed with the court in March that Montez "lacked the sophistication necessary to make his plan work," and did not intend to take advantage of those who invested.

"Rolando Montez is not evil, (and) had no intent to defraud, misappropriate, or 'swindle' anyone involved as investing in First Latino," McClelland wrote.

Ontiveros also has changed attorneys since the case against him began. His new attorney, Brian Funk, could not be reached for comment. His previous attorney, Joel Bailey, said in January 2005 that Ontiveros believed the intentions of First Latino "were good and pure," but that "things didn't work out as they had planned."

Robert Madruga, the prosecutor originally assigned to the First Latino case -- he has since retired -- said at a hearing in December 2004 that the district attorney's office did not believe Johnson, who served on First Latino's board of directors, had a high amount of participation in First Latino programs. She worked to help repair credit for some potential investors, but none of those who sought credit assistance through First Latino ever had their credit repaired, Madruga said at that time.

Miller is alleged to have conspired with Montez to forge the signature of Montez's sister-in-law to transfer her partial ownership of property on Alta Vista Drive to Montez, who then transferred ownership of the property to First Latino, according to a "statement of facts" that Khalil, the current prosecutor on the case, filed with the court in March.

First Latino sold the Alta Vista Drive property in May 2004 to Allen & Associates R.E.I. LLC. Although the sale price was $1.3 million, Allen & Associates still owed First Latino $600,000 of that amount through a promissory note.

While the criminal case was pending, the district attorney's office placed a lien on the promissory note and other property First Latino held so they could be used to pay restitution to investors if the defendants are convicted.

A financial agreement announced in March may provide money for that potential restitution. The agreement allows Allen & Associates, which was not involved with First Latino's business activities, to move forward with plans to build eight single-family homes on the Alta Vista Drive land, put them up for sale, use the sale proceeds to pay off a $5 million construction loan and provide more than a $1 million for restitution to First Latino investors.

Construction on the Alta Vista property has not begun yet. John Conley, Vista's city planner, said Allen & Associates still is in the plan check process for grading, a final map and street improvement plans. The company has gone through several plan checks, but has not submitted all of its paperwork yet, Conley said.

None of the restitution provided for in the financial agreement, however, will go to a couple in Washington state who allege they also were victimized by First Latino, but in a different way.

Andy Pedersen, 66, said in a telephone interview that health problems forced him, and his wife, Beverly Pedersen, to file for bankruptcy, but during the bankruptcy proceedings, they agreed to sell their 34-acre farm to First Latino for $450,000 in 2003. When the company never came through with the money, a judge dismissed the bankruptcy case and a mortgage company foreclosed on the farm, leaving the Pedersens without a home, Andy Pedersen said.

"We could have sold it to somebody else, but we thought we had a deal," Andy Pedersen said. "We lost everything because of them."

Contact staff writer Scott Marshall at (760) 631-6623 or smarshall@nctimes.com.

Previous articles:

Judge dismisses case against suspect in investment scandal

First Latino defendant gets prison time

Man pleads guilty in First Latino case

Financial agreement reached in First Latino case

Suspect faces trial in First Latino case

Investors demand payment from First Latino

DA charges sixth suspect in First Latino case

More First Latino investors tell of lost money

DA files papers to safeguard First Latino property

Bail cut for First Latino defendants

First Latino defendants plead not guilty

Grand jury indicts First Latino officials

Investors: Promises by First Latino unfulfilled0