Moriarty accused of running a Ponzi scheme
November 2, 2013
Grover Beach financier Al Moriarty is accused of placing nearly $10 million of investor funds in his personal bank account, according to San Luis Obispo County District Attorney’s office investigators.
Moriarty, 80, then used the funds to pay other investors, construction cost on his own and other personal and business expenses.
Moriarty attracted investors with promises of 10 percent interest on loans slated to mature in five years. He would then tell investors their money would be used to provide home loans to educators.
In 2012, after Moriarty stopped paying interest and told investors he was out of money, Moriarty moved to Washington. He then filed for bankruptcy, owing more than $22 million to creditors and investors.
Moriarty, 80, faces seven charges including securities fraud and scheming to defraud.
During a preliminary hearing this week, Moriarty pled not guilty. He remains in San Luis Obispo County Jail with bail set at $5 million.