High-Yield Investment Program
Fraud Plea
United States Attorney Karen P. Hewitt
announced that Clementine Estrada pled guilty in federal
court in San Diego to a conspiracy charge related to
two fraudulent high-yield investment programs she
managed and operated in Escondido, California: the
Crystal Rose and Sterling Rose Capitalization Programs.
She entered her guilty plea pursuant to a plea agreement
in U.S. District Court on Friday, May 9, 2008, before
U.S. District Court Judge Barry Ted Moskowitz.
In the plea agreement, Estrada admitted
that between December 2001 and August 2004, she conspired
to defraud 68 investors out of nearly $2,000,000 through
these fraudulent investment programs. Estrada
promised investors high rates of returns, up to 90%
per month in some cases, while guaranteeing the
investors’ principal. However, her promises and
guarantees to the investors were false. She admitted
in the
plea agreement that she made false representations
to the investors to induce them to participate in her
investment programs, that she then misappropriated
and dissipated the investors’ money, and that
she
provided false and misleading reports to the investors
about bogus fund recovery efforts.
Estrada further admitted that she attempted
to obstruct justice during the government’s investigation
of her activities and agreed that her criminal conduct
violated the terms of a permanent injunction previously
entered against her in the Southern District of California
following an action brought by the Securities and
Exchange Commission.
A sentencing hearing is scheduled
before Judge Moskowitz on August 8, 2008, at 9:30
a.m.
DEFENDANT Case No.
07CR1465-BTM
Clementine A. Estrada
Age: 66
SUMMARY OF CHARGES
Title 18, United States Code, Section 371 - Conspiracy
PARTICIPATING AGENCY
Federal Bureau of Investigation
