Hillsborough man appeals guilty to wire fraud in $15 million investor scam case

A from man Hillsborough appealed guilty Tuesday to one count of wire fraud in connection with a supposed Ponzi scheme in which he and a defendant bilked investors out of millions of dollars.

U.S. Police said Robert C. Brown Jr., who also has ties to Vallejo, and Duane Allen Eddings, 49, of Vallejo, guaranteed potential investors in his Trebor Company returns of up to 30 percent on their investments.

Prosecutors said for numerous years, beginning in 2001, the defendants failed to invest most of the money and used it as a substitute to lead plentiful lifestyles. Prosecutors said the defendants had raised about $15 million. At the time of the comment, Brown had been living in Hillsborough.

Eddings has appealed not guilty and is scheduled to appear in U. S. District Court in Sacramento next week to set a trial date.

Brown, 56, faces a maximum 20 years and $250,000 fine on the assurance. Sentencing was set for Aug. 3 before U.S. District Judge John A. Mendez.

In addition to the condemnation returned against Brown in February, 2009, the Securities and Exchange Commission filed a civil lawsuit in July 2008 alleging securities fraud.

amongst the alleged victims of Brown's investment scheme were famous downtowns Vallejo business people.
Brown is not in custody, a U.S. attorney's office spokeswoman said.

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