WILMINGTON, Del. (AP) - A Delaware real estate broker has pleaded guilty in a Ponzi scheme that prosecutors say defrauded investors of more than $3.3 million.
News outlets cite a U.S. Attorney’s Office release that says Carl Chen pleaded guilty to wire-fraud charges Tuesday. Chen is the owner of Chenmax Properties, Inc., and a part-owner of Re/Max Sunvest Realty Co.
According to court documents, Chen solicited Re/Max Sunvest Realty clients and others to invest $6.6 million between 1991 and 2017. Chen told investors the funds would be used to purchase real estate that would provide annual interest returns of 10-15 percent. But between 2013 and 2017, Chen used money from later investors to pay off obligations to prior investors.
Chen declared bankruptcy in October 2017, seeking to discharge millions in debts owed to investors.
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