Branford Man Admits Defrauding Investors of More Than $2 Million
|U.S. Attorney’s Office September 18, 2013|
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Juan Jose Alvarez de Lugo Azpurua, 53, of Branford, waived his right to indictment and pleaded guilty today before Senior U.S. District Judge Warren W. Eginton in Bridgeport to one count of wire fraud stemming from his operation of a real estate investment scheme that defrauded individuals out of more than $2 million.
According to court documents and statements made in court, Alvarez de Lugo held himself out as the president of multiple successful businesses specializing in real estate development programs. Alvarez de Lugo represented to victim investors that his business was acquiring houses from the city of New Haven and from local banks, which houses would be remodeled and sold, and that invested funds would be used for this project. At times, Alvarez de Lugo represented to victim investors that he was working jointly with New Haven on the Livable City Initiative, and he stated that the remodeled homes would be used and occupied by low income families that secured financing from a local bank and State of Connecticut agencies. Alvarez de Lugo also told investors that he was developing a senior housing facility in New Haven. Alvarez de Lugo provided investors with promissory notes and other documentation that promised to pay investors interest of 20 percent per year and a full return of principal in one year.
In pleading guilty, Alvarez de Lugo admitted that the representations he made to victims were materially false and that he did not invest his victims’ money as promised. He did not own and develop the large number of properties he represented to investors, and he had no relationship with the city of New Haven or the State of Connecticut. Alvarez de Lugo spent investment money on his own personal expenses and enriched himself and his relatives.
Between approximately 2005 and 2010, Alvarez de Lugo defrauded more than 10 victims of at least $2 million.
Alvarez de Lugo’s three companies, Arquin Decoraciones LLC, Arquin Development LLC, and Juko Investments LLC, and the investment instruments he provided were never registered with the Securities and Exchange Commission or Connecticut Department of Banking.
Judge Eginton has scheduled sentencing for December 11, 2013, at which time Alvarez de Lugo faces a maximum term of imprisonment of 20 years.
Alvarez de Lugo has been detained since January 18, 2013, when he was arrested on a federal criminal complaint.
This matter is being investigated by the Federal Bureau of Investigation with the assistance of the State of Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.