Federal agents say an Irvine man who pitched himself as a stock-options whiz was really running a Ponzi-style operation that helped bankroll his lifestyle and a shot at pricey coastal property.
Todd Douglas Mulliner, 61, of Irvine was arrested this week after investigators said he persuaded investors to pour money into what they believed was a stock-options trading fund, then diverted much of the cash for personal use. Authorities say some of that money went toward an alleged attempt to buy coastal real estate. News of the arrest was first publicly posted on Friday evening.
According to FBI Los Angeles, Mulliner raised funds by pitching a stock-options trading strategy and “used most of the investors’ money to pay for personal items, including trying to buy coastal real estate.” The agency listed his age and Irvine residence and said the investigation is still active.
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How Regulators Describe A Ponzi Scheme
A Ponzi scheme typically uses money from new investors to pay earlier investors instead of generating real investment profits, which makes the whole thing unstable from the start. As the SEC’s Investor.gov explains, operators often pitch unusually high and steady returns, then quietly siphon off investor funds for themselves. Regulators say those hallmarks mirror the allegations in Mulliner’s case.
Orange County’s Track Record With Similar Scams
Orange County is no stranger to splashy investment-fraud busts, including real-estate vehicles and so-called affinity schemes that zero in on particular communities. Coverage by the Los Angeles Times and related government filings show that prosecutors routinely turn to mail-fraud and wire-fraud charges in those kinds of cases.
What Charges Could Follow
Federal probes into suspected Ponzi operations often lead to counts such as wire fraud, securities fraud, and conspiracy, all of which can carry lengthy prison terms if a defendant is convicted. Recent Department of Justice press releases in similar matters show U.S. Attorney offices and FBI financial-crimes teams frequently stacking conspiracy and securities-fraud charges alongside core fraud counts.
If You Invested Or Have Information
People who invested with Mulliner, or who have account statements, emails, or other records tied to the fund, are being urged to keep those documents and consider reaching out to regulators. The California Department of Financial Protection and Innovation runs a complaint portal for suspected investment fraud, and the SEC’s Investor.gov lists tips and reporting tools for potential victims…