In the following press release United States Attorney Joseph P. Russoniello announced that Cheryl Hernandez Camus of Concord, California made her initial appearance in federal court in San Francisco on April 22, 2008 before United States Magistrate Judge James Larson. A federal grand jury in San Francisco had previously indicted Ms. Camus on April 8, 2008 on charges of mail and wire fraud in connection with a Ponzi scheme. Ms. Camus is scheduled for her next appearance in federal court in San Francisco on April 29, 2008 before United States Magistrate Judge James Larson and on May 5, 2008 before United States District Judge Marilyn Hall Patel.

According to the indictment, Ms. Camus, 36, is alleged to have made a number of misrepresentations about a money lending investment, where she promised fixed returns and the return of the principle investment within a fixed period of time. The indictment alleges that Ms. Camus made one or more of the following material false representations and promises in order to induce the investor to give her money:

• The investor’s money would be used to help finance real estate transactions, such as payment of closing costs or down payment;
• The investor’s money would be used to pay medical costs;
• The investor would receive a fixed monthly interest payment on the investment;
• The investor would receive the return of the principle investment amount within a fixed period of time;
• The loans would involve “really no risk.”
• Ms. Camus screened the borrowers to ensure that money was only lent to borrowers who had the ability to repay;
• Ms. Camus had been conducting similar transactions for three years and the returns had been “awesome.”
• Ms. Camus would personally guarantee the investment;
• The investment would be secured by a legitimate deed of trust.

Instead, according to the indictment, Ms. Camus used the money she obtained from investors for personal expenses and to pay back prior investors.

The maximum statutory penalty for each count of mail fraud, in violation of 18 U.S.C. § 1341, and wire fraud, in violation of 18 U.S.C. § 1343 is 20 years in prison, and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Christina Hua is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Wilson Wong. The prosecution is the result of a two year investigation by the Federal Bureau of Investigation.

Update on Thursday, December 11, 2008 at 11:01AM by The Editor - Ian Shuter - ACFE, DMS

Cheryl Hernandez Camus pleaded guilty yesterday to mail fraud and wire fraud in connection with a real estate investment scheme, United States Attorney Joseph P. Russoniello announced.

Camus, 36, of Concord, Calif., was indicted by a federal Grand Jury on April 8. She was charged with five counts of wire fraud and two counts of mail fraud. Under the plea agreement, Camus pled guilty to all counts of the indictment.

In pleading guilty, Camus admitted to devising a short-term money lending investment scheme in which she promised fixed returns and the return of the principle investment within a fixed period of time. Camus admitted making a number of false representations in conjunction with the investment scheme.

Click here for the full press release

Update on Tuesday, September 22, 2009 at 1:12PM by The Editor - Ian Shuter - ACFE, DMS

Cheryl Hernandez Camus was sentenced today to 63 months in prison and ordered to pay $1,457,255 in restitution for mail and wire fraud in connection with a real estate investment scheme, United States Attorney Joseph P. Russoniello announced.

Ms. Camus pleaded guilty on December 12, 2008 to five counts of wire fraud and two counts of mail fraud. In pleading guilty, Camus admitted to devising a short-term money lending investment scheme in which she promised fixed returns and the return of the principle investment within a fixed period of time. Ms. Camus admitted making a number of false representations in conjunction with the investment scheme, including:

FBI Press Release