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Convicted Ponzi mastermind indicted by Grand Jury for setting up new scams

(SAN DIEGO) San Diego County District Attorney Bonnie M. Dumanis and FBI Special Agent-in-Charge Keith Slotter have announced a Grand Jury indicting four people for an alleged Ponzi scheme which largely targeted the Filipino community.

One of the defendants, Edmundo Rubi, is scheduled to enter a plea later today.

“Defendant Rubi brazenly ignored the conditions of his parole and went right back to committing the same types of crimes,” said DA Dumanis.

Rubi was convicted in 2005 for masterminding the so-called “Knights Express” Ponzi scheme which swindled $24 million from 425 victims, most of whom were members of the Filipino community living in the South Bay.

In meetings in homes and a Mission Valley office, he sold investors on the idea that his companies would purchase U.S. government obligations at a discount overseas and sell them at a profit. Rubi was convicted and sentenced to 70 months in custody but was on supervised release when he began the new scam.

Rubi was re-arrested last July after a joint investigation between the San Diego County District Attorney’s office and the FBI.

As part of the scam, 22 people quitclaimed 34 properties into various fraudulent trusts, owned by Rubi and administered by Ben and Gloria Hebron. Rubi was prohibited at the time from having any contact with investors or financial accounts as part of his federal parole.

The defendants are charged with 54 felony counts including conspiracy to commit securities fraud, securities fraud, sale of unqualified securities, grand theft, perjury, foreclosure consultant fraud, and rent skimming. The defendants face up to 15 years in state prison if convicted.