Estate Financial felon getting out of prison early
December 5, 2011
A principal in a fraudulent $3oo million investment scheme he ran out of the Estate Financial Inc. office in Paso Robles, which financially ruined thousands of people, is slated to be released after serving a little more than three years in prison, according to a Department of Corrections and Rehabilitation notice of release.
After spending three years and four months of an eight year sentence, Joshua Yaguda, 43, is to be released under San Luis Obispo County Probation supervision on Feb. 28, 2012. If he commits no further violations while on probation, he will likely be released after one year by statute, said Jim Salio, SLO County chief probation officer.
San Luis Obispo Superior Court Judge Jac Crawford sentenced Estate Financial, Inc. principal Yaguda to eight years and his mother Karen Guth to 12 years on Dec. 7, 2009. The court credited Yaguda with time served in San Luis Obispo County Jail following his Oct. 16, 2008 arrest.
Yaguda and Guth plead guilty to fraudulently selling securities without the proper licenses, lying to investors and stealing or destroying property worth $3.2 million.
Even so, EFI’s portfolio contained more than $317 million in monies owed to investors when the company filed bankruptcy in 2008. Of that, only $21,000 was held free and clear.
Guth and Yaguda illegally used investor monies contracted to fund construction projects to fund other businesses they owned, to pay investors for non-related projects, and to cover operating expenses.