Garry Bradford, 62, Sacramento, California, was arrested after a federal grand jury returned a five-count indictment against him on April 14, 2011. He is charged with wire fraud in connection with a real estate investment “Ponzi” scheme.
According to the indictment, from August 2004 until October 2008, Bradford ran an investment club, Millenium [sic] Capital Group Inc. He told investors that he would invest their money in real estate on their behalf, but in fact used their money to pay purported returns to earlier investors and for his own personal benefit. Bradford told investors that the Millenium Capital Group was making sufficient profits in real estate to pay an 18 percent return.
The indictment alleges that the Millenium Capital Group received approximately $2.2 million in deposits from about 21 individuals and at least one title company. Only about $700,000 was actually invested in real estate.
At his arraignment before U.S. Magistrate Judge Kendall Newman, Bradford pleaded not guilty. He was released from custody on a $50,000 bond and is scheduled to appear before United States District Judge Kimberly J. Mueller on May 19, 2011.
This case is the product of an extensive investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew Segal is prosecuting the case.
The maximum statutory penalty for wire fraud is 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.