Elk Grove Man Sentenced to 30 Years For Ponzi Scheme

September 15, 2014 |

Three Sacramento-area residents were sentenced today for their roles in the Diversified Management Consultants Ponzi scheme, United States Attorney Benjamin B. Wagner announced.

Among those was an Elk Grove man who received 30 years in the multi-million dollar Ponze scheme. Christopher Jackson, 46, of Elk Grove, was sentenced to 30 years in prison; Michael Bolden, 60, of Sacramento, was sentenced to 20 years in prison; and Victor Alvarado, 53, of Sacramento, was sentenced to 10 years in prison.

United States District Judge Troy L. Nunley sentenced each defendant during a daylong hearing in which he heard from many defrauded investors and an FBI forensic accountant. At the end of the day, the court determined that three remaining co-defendants will be sentenced at a later date. After hearing from victims, Judge Nunley characterized the scheme as outright greed, saying, “When you had an opportunity to stop, even when it involved your own family members, you didn’t. This is one of the worst fraud schemes I have ever seen.”

According to court documents, between 2003 and 2009, Diversified Management Consultants (DMC) purported to help people invest money in real estate development and save their homes from foreclosure. In reality, DMC was an investment fraud scheme that defrauded at least 240 people out of approximately $36,950,000. 

Bolden was the president of DMC and pleaded guilty to one count of wire fraud. This was not Bolden’s first federal fraud conviction. In 1994, Bolden was sentenced to 21 months in prison for conspiracy, loan fraud, and securities fraud in connection with an earlier investment fraud scheme.

Jackson was the president of Genesis Innovations. The only defendant to go to trial, a jury convicted him of six counts of wire fraud. The evidence at trial established that out of the $10 million he took from 80 investors, Jackson invested no more than about $2.5 million in developing real estate. He used the rest to pay false returns to other investors and to live in a way that he himself compared to an entertainment or sports star.

Jackson used the Genesis Innovations account to obtain a Lamborghini, a Rolls Royce, a BMW, and a Range Rover. He employed a personal chef and a bodyguard who at times carried Jackson’s cash for him in a metal briefcase. Jackson took an entourage of guests on annual trips to Las Vegas where they joined him at the finest hotels and restaurants. He used over $1 million from his investment club account to go shopping, buy jewelry, and to landscape his house.

Alvarado was the president of Equishare. Alvarado pleaded guilty to one count of conspiracy and one count of making false statements. Alvarado was the one who found a way for DMC to have access to victims’ tax-deferred retirement accounts through a third-party self-directed IRA administrator. When interviewed by the FBI about his involvement in DMC, Alvarado lied.

“Bolden, Jackson and their co-defendants cruelly took advantage of their victims, extracting from many of them a lifetime of hard-earned savings,” said U.S. Attorney Wagner. “They may have destroyed his victims’ dreams of financial security in retirement, but their own retirement in federal prison will be considerably worse.” U.S. Attorney Wagner cited the outstanding work of FBI Special Agent Richard Snodgrass as critical to dismantling the complex investment fraud scheme, which required the analysis of dozens of bank accounts and interviews of scores of victims of other witnesses.