News Column

Branford Man Sentenced To 4 Years For Investment Fraud Scheme

January 29, 2014

By Kelly Glista, The Hartford Courant

Jan. 29 -- BRIDGEPORT -- A Branford man was sentenced to four years in federal prison on Tuesday for running a real estate investment scheme that defrauded investors of more than $5 million , according to a press release from the U.S. Attorney's office. Juan Jose Alvarez De Lugo Azpurua , 54, was also ordered to pay $5,161,083 in restitution, the release states. From 2005 to 2010, Alvarez De Lugo defrauded approximately 30 victims by telling them he was the president of multiple successful businesses specializing in real estate development programs. He told investors that their funds would be used to remodel houses, which were acquired from the city of New Haven and local banks. The houses would then be sold, he said. Alvarez De Lugo promised to pay the investors interest of 20 percent per year, and a full return of their investment in one year, the release states. According to the release, Alvarez De Lugo admitted that he did not own and develop the large number of properties he represented to investors, and had no relationship with the City of New Haven or the State of Connecticut . Instead, Alvarez De Lugo used investors' funds to build a pool and a backyard patio at his home in Branford and pay his children's school and college tuition, the release states. He was arrested in January 2013 and pleaded guilty to wire fraud in September, the release states. ___ (c)2014 The Hartford Courant (Hartford, Conn.) Visit The Hartford Courant (Hartford, Conn.) at Distributed by MCT Information Services

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Source: Hartford Courant (CT)

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