GUILTY PLEA IN MULTI-MILLION FRAUD SCHEMES

By STANLEY JORDAN

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JOSEPH DEL VALLE, an owner and partner of various investment companies, pled guilty today in Manhattan federal court to wire fraud and aggravated identity theft charges for operating two fraudulent schemes that resulted in more than $5 million in investor losses. DEL VALLE pled guilty to a four-count Indictment before United States District Judge Richard M. Berman.

Manhattan U.S. Attorney Preet Bharara stated: “Joseph Del Valle convinced his clients to invest millions of dollars in his real estate and restaurant projects. But in reality, his clients were only investing in Del Valle’s personal slush fund that he used to supplement his self-indulgent lifestyle. Del Valle’s plea today will ensure that he can no longer victimize any other investors.”

Beginning in 2005, JOSEPH DEL VALLE, a co-conspirator (“CC-1”), and an employee of Vanquish Acquisition Partners LLC began soliciting investors for a real estate development project in the Little Havana neighborhood of Miami (referred to herein as “Project Miami”). Project Miami involved two high-rise buildings in which the bottom floors would house retail shops and the top floors would be residential condominiums. Project Miami was designed to provide affordable housing to middle-income individuals and included an arrangement for financing so that purchasers of the condominiums would receive government-subsidized mortgages. From 2005 through 2007, DEL VALLE, CC-1, and the employee obtained approximately $6.4 million from investors for Project Miami.

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