Latest Legal News from the Criminal Courts of Los Angeles, California and the U.S.

April 09, 2008

ARCADIA MAN AGREES TO PLEAD GUILTY TO OPERATING SCAM THAT TOOK AT LEAST $7.8 MILLION FROM VICTIMS

An Arcadia man has agreed to plead guilty to federal wire fraud and contempt of court charges related to an investment scheme that defrauded dozens of victims out of at least $7.8 million.

In a plea agreement filed today in United States District Court in Los Angeles, Charles “Chuck” Trigilio, 45, agreed to plead guilty to two counts of wire fraud and one count of contempt of court for violating an order to cease his fraudulent activities.

Trigilio has been in custody since January when he was arrested by special agents with the Federal Bureau of Investigation.

According to court documents, Trigilio began soliciting individuals in 2003 to invest in his option writing investment program. He explained to investors that his options were profitable whether the stock market went up or down, and he guaranteed a 4 percent return each month with no risk.

To carry out his scheme, Trigilio solicited personal information from victims, and he opened accounts under their names at various investment firms. Trigilio had his victims sign contracts prohibiting them from checking the balance of their investment accounts and giving Trigilio sole control of the trading in the accounts. Armed with his victims’ personal information, Trigilio called investment firms, pretending to be the victims, and transferred millions of dollars from his victims’ investment accounts to his own bank accounts and to bank accounts controlled by his wife. At just one investment firm, Trigilio victims deposited $7.8 million, of which only $80,000 remained as of August 2007. Trigilio perpetrated this fraud with at least three other investment firms, as well.

Overall, Trigilio lost millions trading his victims’ money in the markets, and transferred millions more to his own personal bank accounts. This money was used to send “profit” payments to investors, and to pay for Trigilio’s personal expenses.

Prior to the criminal investigation, which was initiated in August 2007, the Securities and Exchange Commission filed a civil suit against Trigilio alleging that he was engaged in investment fraud. In October 2007, United States District Judge Christina A. Snyder ordered Trigilio to discontinue his investment fraud. Trigilio ignored this order, continuing to solicit investors up to the day he was arrested. Trigilio’s last victim invested $40,000 with Trigilio two days prior to his arrest.

Among Trigilio’s victims was a man who invested with Trigilio in order to generate enough money to cover his wife’s cancer treatments, a man who obtained a home equity line of credit in order to invest with Trigilio and earn the 48 percent annual profits, and dozens of other investors spanning from Hawaii to Florida.

Trigilio is expected to enter his guilty pleas next Monday before United States District Judge Christina A. Snyder.

The wire fraud charges each carry a maximum statutory penalty of 20 years in federal prison. The contempt of court count does not carry any maximum sentence.

This case was investigated by the Federal Bureau of Investigation.

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CALIFORNIA CRIMINAL DEFENSE LAWYER

JOSEPH SHEMARIA

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Latest Legal News from the Criminal Courts of Los Angeles, California and the U.S.