LAWFUEL – Legal Newswire – Los Angeles, California – The operator of fraudulent investment companies known as Valley Precision Imaging and Desert Medical Imaging, both body scanning clinics, and Multivision, an internet shopping website, pleaded guilty yesterday afternoon in United States District Court in Los Angeles to mail fraud and money laundering charges.
William Richard Vorburger, Jr., of Oxnard, entered his guilty plea before United States District Judge Christina A. Snyder to one count of mail fraud and one count of money laundering related to a fraud scheme that Vorburger admitted in his plea agreement caused victims to send approximately $1 million to the fraudulent investment companies he operated.
In his plea agreement, Vorburger admitted that he solicited investments, fraudulently telling the investors that he would use their money to further the businesses which would result in high rates of return. Further, Vorburger admitted that none of the businesses ever actually started running and none ever made a profit. Further, the victims lost all of the money they had invested with Vorburger based upon his fraudulent claims.
Vorburger admitted in his plea agreement that he spent only a small portion of the victim’s money on any kind of business expenses, spending the remaining money on his own personal expenses and other unauthorized costs. In total, Vorburger induced approximately 15 victims to send approximately $1,000,000 to his fraudulent investment companies.
Vorburger faces a statutory maximum 40 years in federal prison and fines totaling $750,000, when sentenced for his crimes. Judge Snyder ordered Vorburger to return for sentencing on December 10, 2007.
The investigation into Vorburger and his fraudulent investment companies was conducted by agents of IRS – Criminal Investigation and the United States Postal Inspection Service.
Public Information Officer
Internal Revenue Service – Criminal Investigation
300 North Los Angeles Street, Room 5016
Los Angeles, California 90012
Desk: (213) 576-3235
Fax: (213) 576-3217
Mobile: (213) 305-9571