Univest Defendant Pleads Guilty

A Woodland Hills man accused of defrauding friends and fellow Friars Club members in a multimillion-dollar investment scheme pleaded guilty Thursday to four felony counts of grand theft.

Joel Burakoff, 57, admitted that he stole from clients in a scheme that triggered the 1995 collapse of Gardena-based Univest Home Loan. He quietly changed his earlier not guilty pleas in Los Angeles County Superior Court.

Under the terms of the deal, the curly-haired Burakoff, described by several of his stunned victims as a dear, devoted friend, agreed to a sentence of four years in prison.

Sentencing by Judge Terry A. Green is set for July 15.

Burakoff, wearing a navy pinstriped suit, kept his hands folded in front of him during the brief hearing. His only words in response to questions from Deputy Dist. Atty. Thomas R. Wenke, who prosecuted the case, were “yes,” “no,” and “guilty.”

Burakoff, who remains free on his own recognizance, was accused of luring wealthy investors to put money into Univest by promising large returns on high-interest, inner-city, real estate and business loans, but then not repaying the investors once the loans were paid off.

Many investors, who typically lost $50,000 or more, were Burakoff’s friends or knew him through the Friars Club of Beverly Hills, where he had been a member of the board of directors.

“I’ve been told that for a lot of years a lot of people made money with him, but when the real estate market turned that was no longer the case,” Wenke said outside the courtroom. “A lot of people felt that they were cheated by a friend and that adds to the pain.”

Prosecutors and Burakoff’s lawyer said Burakoff, who was chairman and treasurer of Univest, is negotiating with federal prosecutors regarding his alleged fraudulent dealings with a Beverly Hills bank. Burakoff allegedly diverted investors’ funds to an account he controlled, authorities said.

Federal authorities are expected to agree to terms similar to those accepted by state prosecutors, allowing Burakoff to serve concurrent terms, the lawyers said.

Thom Mrozek, a spokesman for the U.S. attorney’s office, said no federal charges have been filed against Burakoff, but that prosecutors are communicating with Burakoff and his lawyer, George Buehler.

“We’re discussing the disposition of a federal criminal case,” said Mrozek, who declined to provide details.

Both Wenke and Buehler said the plea-bargain was fair.

“From day one in this case we’ve cooperated,” Buehler said outside the courtroom. “Mr. Burakoff is obviously unhappy about the events that led us to this place.”

Buehler said Burakoff, who declined to comment, was unable to make restitution despite his guilty plea.

“He does not have the ability now,” Buehler said. “He himself is as broke as anybody because of the collapse of Univest.”

Wenke said the inclusion of restitution in the plea agreement covers future assets.

“At this point we don’t know of any assets. That’s a frequent problem with these cases,” he said. “In the event the defendant ever has the wherewithal in the future, the victims have the ability to collect.”

Wenke said the case against Burakoff stemmed from allegations from Univest investors who reported losing a total of more than $500,000 during the past several years.

Since Univest was placed under receivership about 19 months ago, investors and others have filed more than 300 claims seeking more than $16 million.

Stanley H. Green, a lawyer representing several allegedly defrauded investors, said he expected his clients to be happy to hear that Burakoff pleaded guilty.

“Investors I think will be very happy to hear that at least there’s some justice,” Green said. “His guilty plea doesn’t get them their money back, but at least I’m sure they’ll feel they’ve gotten some satisfaction.”

Wenke said the case is complicated because some losses were due to illegal activity while others were caused by bad investments, which are not illegal.

“Obviously, if you’re a person who invested with this man, you’re very frustrated and unhappy,” Wenke said. “No amount of time Mr. Burakoff serves in prison is going to get their money back.”

However, Wenke said that the four years Burakoff is expected to serve is in line with other similar white -collar cases.

“We felt that in light of the circumstances--no prior record--that this was a fair disposition,” Wenke said. “The one thing that’s certain is that he will be going to prison.”