Nipomo man sentenced to 11 years for fraud

October 2, 2013

barscuffsA Nipomo man was sentenced Monday to 11 years in federal prison for a fraud scheme that caused more than $46 million in losses to several victims, including his in-laws, a friend and five banks.

John Mark Moore, 51, operated the fraud scheme for well over a decade before he came clean to his family in the fall of 2011 and then to federal authorities last year. The judge, who called Moore “despicable and disgusting,” also ordered Moore to pay $46 million in restitution.

The court ordered Moore to enter federal custody on Nov. 12.

Moore, who plead guilty on April 30, admitted that he forged loan documents while socializing with bank employees who failed to validate signatures, documents say. He blames bank employees for letting their guard down. Moore contends that because he was the son-in-law of bank board member Michael Cavaletto, employees allowed him to perpetuate the theft.

Over the course of 11 years, Moore embezzled approximately $24 million from his in-laws, plus another $23 million from five banks and another individual who was a friend and business associate of his in-laws.

In early 2000, Moore began managing the Cavaletto family trust. Cavaletto is an avocado grower and the co-owner of C&M Nursery in Nipomo. It was at this time Moore started applying for loans in Cavaletto’s name, without informing Cavaletto, according to documents obtained by CalCoastNews.

In another scheme, Moore fraudulently obtained funds by increasing his lines of credits he obtained in the name of himself, his wife, his companies, and his mother through various means, including forging his wife’ signature, submitting false personal financial statements, and pledging phony collateral to secure the loans. As a result of this fraudulent borrowing, the victim lending institutions – including FCW, Heritage Oaks Bank, Union Bank, Rabobank and Happy State Bank in Dumas, Texas – sustained aggregate losses of approximately $11.4 million.