Indictment Charges Man with Fraud and Defrauding Investors of Over $10 Million

United States Attorney Laura E. Duffy announced today the unsealing of an indictment charging Steven Bartko with wire fraud, mail fraud and money laundering for his role in operating a Ponzi scheme that defrauded investors of over $10 million.

The indictment alleges that Bartko used his electronics equipment brokerage business, Starfire Technologies, 1768 Kings Road Vista, CA 92084, to induce individuals to invest by falsely representing that Starfire was in the business of providing circuit boards and other electronic parts to government contractors. According to the indictment, Bartko offered investors notes promising monthly returns ranging from 5 percent to 8 percent. In order to justify yearly returns exceeding 60 percent, Bartko created invoices that falsely indicated that Starfire had ongoing contacts with government contractors to provide circuit boards and other electronic parts.

As also noted in the indictment, Barko further convinced individuals to invest in Starfire by falsely representing that he made returns in excess of 20 percent within 60 days on electronic parts supplied to government contractors. In order to conceal his fraudulent scheme from investors, Bartko induced investors not to withdraw their funds (or to send additional money to Starfire) by issuing false account statements indicating that investors were routinely earning substantial positive returns. According to the indictment, Bartko used new investor funds to pay “alleged returns” to old investors who wished to withdraw their funds from the scheme.

This case is being investigated by federal agents with Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations.

The defendant was arraigned earlier today before United States Magistrate Jan M. Adler. The court imposed a $50,000 bond as a condition of Bartko’s release from custody pending trial. The defendant is due next in court June 2, 2011 before Judge Adler for a status hearing regarding counsel.

Case No. 11cr-2075-MMA

DEFENDANT Steven Bartko

SUMMARY OF CHARGESTitle 18, United States Code, Section 1341 - Mail Fraud Title 18, United States Code, Section 1343 - Wire Fraud Title 18, United States Code, Section 1956 - Money Laundering

INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigations

An indictment is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.