A Newport Beach resident will pay $3.3 million to settle charges by the Securities and Exchange Commission that he defrauded investors and misappropriated more than $1.3 million from real estate investment fund Caliber Partnership I LLC.
Paul A. Garcia allegedly raised $675,000 in 2014 and 2015 from 13 investors. He told the investors Caliber would use the money to buy a golf resort and join a real estate venture that would go public.
Caliber then borrowed to finance two purchases and misappropriated more than $1.3 million, according to the SEC.
Texas resident Richard T. Woods is also accused of misrepresenting Caliber's prospects in marketing materials used to attract investors.
A victim included an 82-year-old who lost $250,000 in 2014, according to the SEC.
Garcia and his companies will pay more than $3.3 million in penalties. Garcia has been banned from participating in securities offerings and from serving as an officer or director of a public company.
Woods will pay a penalty of $30,000.
The two did not admit or deny the complaint's allegations.
Contact the writer: hmadans@ocregister.com or Twitter: @HannahMadans
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