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Saturday, Oct. 31, 2009

Merced man pleads guilty in Ponzi case

A Merced man who ran a $1.2 million Ponzi scheme pleaded guilty to all the charges against him this week.

Robert Ceccarelli, 35, will almost certainly face several years in prison. He's expected to be sentenced in January.

Ceccarelli was first arrested in late 2006. Prosecutors accused him of lying to investors and taking their money to bankroll a flashy lifestyle.

After a three-week trial, a jury found him guilty of two counts of forgery. Jurors were hung on 19 other theft and fraud counts.

During a Thursday court hearing where Ceccarelli was scheduled to be sentenced for the forgery convictions, he instead pleaded guilty to all 21 counts, prosecutor Walter Wall said Friday.

Visiting Judge John De Groot handed down a tentative sentence of three years in state prison. Wall objected asking for a minimum of nine years.

De Groot is expected to her testimony from victims before making a final sentencing decision in January.

Ceccarelli brokered home mortgage loans under the Heritage Funding Group and dealt in private hard-money loans on the side. The case against him is the District Attorney's Office's first major fraud investigation tied to the real estate boom and bust.

Investigators believe that through personal and business contacts, Ceccarelli developed a network of investors that included local business people and Golden Valley High School teachers.

In one instance, he took $200,000 from a local insurance salesman who expected a return of $400,000. Another time, a woman from Sparks, Nev., took out a second mortgage and gave him $300,000, anticipating a $400,000 return.

In both cases, Ceccarelli couldn't deliver. He began writing bad checks. Prosecutors allege he was purposely deceiving his victims.

-- Corinne Reilly