LOS ANGELES (AP) — A West Covina woman who promised investors up to 20 percent returns on their money has pleaded guilty in a nearly $7 million real estate and small business Ponzi scheme.

Guadalupe Valencia pleaded guilty Monday to six federal fraud charges claiming she bilked more than 150 victims who invested in her Downey-based Real Estate & Loan Consultants and R.E. Equity Group investment pools.

Valencia, 46, who was immediately taken into custody, faces 86 years in federal prison and fines totaling $1.5 million when she’s sentenced May 23.

From 2001 to 2009, prosecutors say Valencia promised investors high rates of interest from 8 percent to 20 percent in as little as 45 days.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (3)
  1. Robert S. says:

    They won’t do a thing to her, but spank her hands, and tell her NO!

  2. Cane says:

    its about time the systems starts cracking down on these demonized, slick, savages. They are no different then a gangster commiting a street robbery.

  3. mister s says:

    A guy I work with described something just like this that he and friends were part of awhile back. Except he was the investor not the schemer….. havent seen him in awhile I wonder how it turned out for him.

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