A Charlotte property investment firm co-founder pleaded guilty to fraud in federal court on Wednesday.
Frank Enrique Lleras, 30, of Charlotte, admitted he had cheated at least 20 victims out of over $3 million and that some of the money was used on himself to purchase expensive jewelry. This occurred from December 2012 through 2015, court records show.
Lleras is charged with wire fraud in connection with an investment fraud scheme involving real estate properties and securities fraud.
He was the chief investment officer, executive vice president, and co-founder of Optimum Property Investments LLC.
Court records show Lleras coaxed victim investors in by promoting the company as one that purchased foreclosed and/or distressed homes in Mecklenburg County and other places, then resold and leased them.
He frequently traveled to the Dominican Republic to coax medical professionals into investing with Optimum, making false claims that the money of the victims would be used to buy real estate in their names and make profit from remodeling then renting or selling the properties, according to prosecutors.
Lleras executed the scheme by creating bank accounts under the names of limited liability companies that were association with each victim, court records shows. Believing that the money would be used by Lleras to buy the properties, the victim investors wired funds to the accounts.
Lleras also created fake documents, including fake tax bill receipts, fake deeds, and false bank statements, on purchase of the properties to send to the victims.
The money Lleras gleaned from the scheme was used to pay off Optimum debts, purchase property for the firm instead of the victims, and to support his lifestyle and other business operations.
Lleras faces a maximum of 20 years in prison and a fine of $5 million for the securities fraud charge. The wire fraud charge carries a fine of $250,000 and maximum prison time of 20 years.
Following the plea hearing, Lleras was released on bail. His sentencing date hasn’t been scheduled yet.
