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Jeanetta Standefor Sentenced to 12 Years in Federal Prison for Real Estate Fraud

The promoter of an $18 million real estate investment scheme that targeted African-American individuals in Southern California and other states was sentenced today to 151 months in federal prison. Jeanetta M. Standefor, a 40-year-old resident of Altadena, California, was sentenced in Los Angeles federal court by United States District Judge Percy Anderson. In addition to the prison term, Judge Anderson ordered Standefor to pay $8,688,924.

Through her Pasadena-based company, Accelerated Funding Group (AFG), Standefor operated a bogus “foreclosure reinstatement” program that attracted more than 600 investors between 2005 and 2007. The scheme purported to use investors’ funds to cure defaults on distressed properties about to be put into foreclosure. While soliciting investor money and promising returns of up to 50 percent in time periods as short as one month, Standefor and AFG were instead operating a Ponzi scheme that used money from new investors to pay previous investors.

Jeanetta Standefor pleaded guilty in September 2008 to two counts of mail fraud.

Standefor’s case involved what is commonly called “affinity fraud,” that is, a fraud directed at a particular community. Jeanetta Standefor and AFG targeted investors in the African-American community through a now-defunct Web site, word of mouth, real estate seminars and testimonials by other seemingly successful African-American investors.

Standefor claimed investor funds would be used to assist owners of distressed properties. Written materials put out by AFG touted its foreclosure reinstatement program as “virtually risk-free” and promised investors that their principal would be safely returned within 72 hours at their request. However, Standefor and AFG did not use investor funds to cure defaults on any residential properties, and investors’ requests for return of their investments were ignored.

Jeanetta Standefor used more than $1.9 million of investor funds for personal expenses, such as her lavish wedding and honeymoon, cars, jewelry, tickets to entertainment events and home renovations.

Posted By: Ralph Roberts @ 11:08 pm Comments (11)
Filed under: Affinity Fraud,California

11 Comments

  1. She appealed her sentance and only got 8 years

    Comment by Yellow one — April 7, 2010 @ 10:00 pm

  2. ms. standerfor had the skills and education to make a decent life for her self, yet she chose to swindle and steal for a living.

    Comment by Mr. P — April 8, 2010 @ 1:58 am

  3. What a piece of shit. So many people like her destroyed a complete industry and the lives of those employed in it. I hope she dies in prison.

    Comment by Josh — April 10, 2010 @ 8:51 pm

  4. She and people like her are disgusting. That crime deserves 30 years because most people have not recovered from such schemes historically and these days it wil be nearly impossible to ever recover. The punishment should be comparable to the length of time it would take to become financially whole again- about a lifetime.

    Comment by Marina — April 12, 2010 @ 1:32 am

  5. The real lesson is that everybody who participated in this scam was greedy. When it sounds to good to be true, beleive me it is. That does not excuse Jeanetta for what she did but if the participants would have taken the time to investigate her investment plan … and stop trying to get rich quick maybe they would not have been taken avantage of. Most real investments are long term and not short when there is a real big pay off. Greedy people are a prime target for con’s. Most successful people work long and hard before things begin to pay off. Unless you hit the lotery it aint an overnight game.

    Comment by Shelley — August 10, 2010 @ 3:36 pm

  6. I want to be unkown
    I think this was a fraud from the start. it seem like greedy people came in and mad ethis woman do this scam. alot of people now aday hate to see black people be sucessful.

    Comment by Anonymous — October 15, 2010 @ 6:35 pm

  7. Yep…greed was the name of the game, and this scank emptied the tank. When she gets out, better watcher her like any of those scamsters…bernie madoff et al… you’re better off putting you money in a can, burying it. At least you won’t be sold a scammed.

    Comment by TheWatcher — October 18, 2010 @ 10:40 pm

  8. We don’t know enough about this to make a good judgement aganst her. Berney Madoff had something to do with this and they drained that woman account.
    They tricked her also to get all of the money for themsleves. White people pull a gun on her and made her do this just to mess her up.

    Comment by Anonymous — April 25, 2011 @ 2:48 pm

  9. We don’t know enough about this to make a good judgement aganst her. Berney Madoff had something to do with this and they drained that woman account.
    They tricked her also to get all of the money for themsleves. White people pull a gun on her and made her do this just to mess her up.

    Comment by anonamous — April 25, 2011 @ 2:49 pm

  10. We don’t know enough about this to make a good judgement aganst her. Berney Madoff had something to do with this and they drained that woman account.
    They tricked her also to get all of the money for themsleves. White people pull a gun on her and made her do this just to mess her up. They did it to take her money.

    Comment by anonamous — April 25, 2011 @ 2:51 pm

  11. They went into this woman business and falsifted paper work and this just is not right

    Comment by Anonymous — April 25, 2011 @ 3:11 pm

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