A Newport Beach man accused of embezzling nearly $3 million from investors in a Ponzi real estate fraud scheme was extradited back to Orange County this week to face trial, the Orange County district attorney's office reported.
Thomas Franklin Tarbutton, 54, is charged with 29 felony counts including grand theft and forgery. If convicted on all counts, he faces up to 30 years and eight months in state prison. Tarbutton was being held on $2 million bail. He is scheduled to be arraigned Thursday in a Santa Ana courtroom.
Between 2004 and 2010, prosecutors say Tarbutton defrauded nine people in a Ponzi real estate fraud scheme. The D.A.'s office reported Tarbutton solicited money from private investors for borrowers looking for funds from non-bank lenders. Instead of funding the loans as promised, prosecutors said Tarbutton used the money for his own benefit or to repay earlier investors.
Tarbutton is also accused of giving his victims fraudulent and forged real estate documents showing they were lien holders on property deeds, as well as forged mortgage payments.
Prosecutors allege Tarbutton gave investors small interest payments to keep them from discovering that the loans had not been repaid, but when the real estate market collapsed he stopped all payments.
The fraud was reported by four victims to the Federal Bureau of Investigation in October 2010. In October 2011, charges were filed against Tarbutton and a $2 million warrant was issued for his arrest.
Tarbutton is accused of fleeing the country, ultimately living in Brazil and this month flying to Panama.
Tarbutton was detained by Panamanian authorities on the Orange County warrant on Saturday attempting to cross the border from Panama to Costa Rica. Panamanian officials returned Tarbutton to Los Angeles International Airport to the custody of the FBI on Tuesday.
The investigation is ongoing. Anyone with additional information or who believes they have been a victim is encouraged to contact Supervising District Attorney Investigator Eric Akerlind at 714-347-8691
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