LOS ANGELES : 3 Indicted in Alleged Fraud Scheme Aimed at Latinos

Three Los Angeles men who allegedly bilked 4,000 Latino investors from Southern California out of $10 million were indicted on federal mail fraud charges, a prosecutor said Wednesday.

Anthony Fadel, 30, Epigmenio Sandoval, 37, and Jose Castellanos, 35, were indicted on 18 counts each of mail fraud. Fadel also was charged with three counts of money laundering.

Assistant U.S. Atty. Ellyn Lindsay said the men, through the Fadel Group Investment Corp., solicited investors via Spanish-language radio and television stations, and through newspaper ads.

The defendants, Lindsay alleged, persuaded the investors to place their money with the Fadel group by promising rates of return of up to 24%. In exchange, the prosecutor alleged, Fadel, Sandoval and Castellanos promised to provide gems and property as a security. Instead, he said, the three men spent the money on themselves, giving out only gems and land deeds that were virtually worthless.

If convicted, Fadel faces up to 150 years behind bars and $6 million in fines. Sandoval and Castellanos face up to 90 years incarceration and $4.5 million in fines apiece.