NEWPORT BEACH : Man Sought in Alleged Fraud That Hit Elderly

Police are seeking a 41-year-old Corona del Mar man suspected of using a bogus investment scheme to cheat about 25 investors, mainly senior citizens on fixed incomes, out of more than $480,000.

An arrest warrant has been issued for Anthony Joseph Petrelli, suspected of luring investors into a real estate swindle fund by promising them 14% to 18% interest, Police Lt. Paul Henisey said Wednesday. Petrelli used the money collected from new investors to pay interest owed to earlier investors in a Ponzi scheme, Henisey said.

Those investors who initially received payments then referred friends to Petrelli, Henisey said.

“About 60% of his investors were senior citizens,” Henisey said. Most were from Orange, Los Angeles and Riverside counties.

Instead of investing in commercial properties as claimed, Petrelli spent about 90% of the investors’ money on himself, Henisey said. Investors’ money was used to pay for his apartment and credit card bills over a three-year period and to buy a 1993 Corvette, he added.

Police began an investigation about seven months ago, obtaining search warrants to seize sales, investment and bank documents from Petrelli’s office in the 3900 block of MacArthur Boulevard. After police raided his office, Petrelli told some investors to contribute into his defense fund or risk losing their money, Police Sgt. Andy Gonis said. Several investors paid thousands of dollars, police said.

“At this moment, we don’t believe that he made any real estate investments in the name of the trust,” Henisey said.

Todd Landgren, Petrelli’s attorney, told police that he would turn in his client after the court issued a warrant. But at 8:30 a.m. Wednesday, Landgren called police to inform them that Petrelli had not followed his instructions.

Investigators are asking anyone with information to call (800) 550-NBPD.