2 O.C. Residents Charged In $11M Ponzi Scheme

ORANGE COUNTY (CBSLA.com) — Two Orange County residents accused of engaging in an $11 million ponzi scheme were charged in Newport Beach on Wednesday.

According to the Orange County District Attorney's Office, Joseph Francis Bartholomew, 75, of Lake Forest is accused of owning and operating MBP Insurance Services Inc., which offered and sold unsecured securities based on fraudulent insurance policies.

KNX 1070's Mike Landa reported Bartholomew made phony offers, with promises of returning investments with 15 to 40 percent interest rates.

From July 2005 to May 2014, Bartholomew is accused of defrauding over 27 victims, most of whom were senior citizens, of more than $11.3 million, according to the California Department of Insurance.

He was charged with one felony count of the use of a device or scheme to defraud, and 28 felony counts for the use of an untrue statement in the purchase or sale of a security.

Wendy King-Jackson, 54, of Laguna Niguel worked at MBP as an insurance agent and is accused of misleading clients by saying the policies were legitimate and legal investments when they were not.

She was charged with one felony count of the use of a device or scheme to defraud, and two felony counts for the use of an untrue statement or omission in connection with the purchase or sale of a security.

Both defendants received a sentencing enhancement for aggravated white-collar crime over $500,000 and loss greater than $3.2 million.

Authorities said a victim reported the crime to the California Department of Insurance, which further investigated the case.

Bartholomew is being held on $11.3 million and must prove that the money comes from a legal source before posting bond, officers explained.

If convicted, he faces a maximum sentence of 42 years in state prison.

King-Jackson faces a maximum sentence of 16 years in state prison if convicted.

Both defendants will be arraigned Thursday in Newport Beach.