Man Pleads Guilty to Numerous Felonies

Allison Tussey —  December 9, 2010 — Leave a comment

Kirk MacArthur Judy, 44, who also uses the name Kirk MacArthur, pleaded guilty On December 1, 2010, in San Bernardino County, California, Superior Court to one felony count each of grand Theft, Theft from an Elder Adult, Selling False Securities, and Filing a False Tax return. Judy has been in custody at the San Bernardino County Jail since his arrest at his lakefront home in June 2010, by San Bernardino County Real Estate Fraud Investigators.

Court documents show that in 2005, Judy befriended the 84-year-old victim after the death of her husband and led her to believe he was an architect who was interested in finding an “investor.” Judy said that he was in business purchasing, renovating, and “flipping” properties in San Bernardino County, and promised returns on the “investments” he sought. The elder victim, as well as other victims, initially “invested” over $500,000.00 with Judy during 2005, receiving occasional “investment return” payments from him.

The scam continued through 2006 when Judy, who by this time had received in excess of $1.2 million dollars from the victims, purchased a large “mansion” in Redlands for himself. Judy, who was not employed during this time, used the money he received to extensively renovate and move into the residence in June 2006. Judy did this despite being contacted numerous times by the victims and their family members seeking full repayment.

In August 2006, Judy convinced the elder victim that the only way she would be repaid is if she loaned him an additional $300,000.00 for a short period of time so he could obtain a refinance loan on the Redlands mansion. The elder victim accompanied Judy to a Las Vegas, Nevada-area bank, where she obtained a $300,000.00 Home Equity Line of Credit loan that was wired to Judy‘s bank account. Judy made several of the monthly loan installments, then quit paying the elder victim and her bank altogether. This left the elder victim responsible for the $300,000.00 loan, along with the original $800,000.00 that Judy had already obtained from her.

Despite winning an $820,000.00 civil judgment against Judy in San Bernardino County Superior Court in January 2010, the elder victim has yet to be repaid the vast bulk of the funds Judy received. Judy, who is not a licensed architect nor is he licensed to sell Securities in California, did not report the monies he received from the victims as income on his tax returns in 2005 and 2006, and he failed to file a tax return in 2007. Judge Donna Garza accepted the plea agreement in which Judy will serve 365 days in County Jail and 5 years State Prison (suspended). Upon his release from jail, Judy will be on 5 years of felony probation, during which time he will be required to pay all of his victims back in regular installments. Should Judy not fully repay his victims within the probationary period, his agreement states that he will be remanded to State Prison to serve the suspended 5-year term.

Investigators from the Franchise Tax Board and Attorneys from the California Department of Corporations provided additional investigation on the case.

Deputy District Attorney Tristan Svare commented on the agreement, “This plea agreement was reached to obtain real restitution for the victims. Should Mr. Judy fulfill his obligations, he will have earned his release from custody. If, however, he does not make full restitution, he will be returned to custody to serve his full term of imprisonment.” Judy is to return for formal sentencing on January 16, 2011.

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Allison Tussey

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