Nabridge Admits Guilt in Investment Scams, Surrenders $650,000

A former Orange County businessman pleaded guilty Wednesday in U.S. District Court in Santa Ana to defrauding hundreds of clients in oil and gas investments and has surrendered $650,000 to help pay for the losses, which prosecutors estimate at up to $2 million.

The creation of the pay-back account by Jerold Nabridge is one of the few instances in the epidemic of telemarketing fraud in Orange County where victims are assured of substantial refunds, federal authorities said.

Nabridge, 55, now of Florida, pleaded guilty to fraud and securities charges that could result in a 20-year prison term in connection with bogus sales by his firms in Irvine and Costa Mesa. He could also face fines of more than $500,000 and be ordered to pay full restitution.

Prosecutors alleged that Nabridge committed securities and mail fraud and interstate transportation of stolen property when he and a small sales staff persuaded investors to purchase interests in oil and gas-bearing property. He worked through three firms of which he was president: Midwest Mineral Properties Inc. of Irvine and Costa Mesa, Nebco Inc. of Irvine, and Kelim Inc. of Costa Mesa. The crimes were committed between 1985 and May, 1988.

Telephone Solicitation

Nabridge, his son Brett and several other employees solicited investments by telephone, largely from persons living outside California.

Customers were initially induced to make small investments of $1,000 to $2,000 in what were described as lucrative oil and gas properties, investigators said.

The salesmen, often using false names, then called those investors back with an extra pitch, often suggesting that purchasing rights to adjacent lots would make their investments even more valuable.

At other times, persons would be persuaded to part with extra cash after salesmen claimed that wells were producing so much oil and gas that storage facilities had to be financed.

Lavish Life Style

In fact, Nabridge never used any investor funds to buy mineral rights, according to Assistant U.S. Atty. Nancy Wieben Stock. He used the money to maintain a lavish life style, including several trips to Europe and the purchase of a Rolls-Royce Silver Shadow this year.

Defense attorney Allan Stokke said his client hopes that his cooperation with prosecutors and the restitution fund may result in a lighter sentence.

“It is extraordinarily unusual for someone charged with this sort of crime to pay it back,� Stokke said. “Most have spent it or hide it.�

As part of the plea agreement, prosecutors agreed not to charge Nabridge’s son with any crimes arising from the boiler room operation, according to Stokke.

Nabridge has been charged with securities violations in his dealings with a Pittsburgh investor, and Pennsylvania authorities are seeking to extradite him for trial.