Former Laguna resident indicted

Andrew Edwards

A federal grand jury in Santa Ana issued an indictment on Wednesday

against a former Laguna Beach resident who is accused of posing as an

investment counselor to defraud two people of more than $500,000.

Authorities are not sure where Donald Westover, 35, currently

resides, Asst. U.S. Atty. Thomas McConville said. Westover allegedly

pretended to represent two well-known telecommunications companies,

the Motorola and Ericcson corporations, as an investment advisor.

According to the indictment, he used these guises to convince two

victims to front large sums of money to finance nonexistent

investments, a problem frequently encountered by federal authorities.

“Regrettably, it is fairly common for investors to be duped out of

large sums of money,” Westover said.

Westover allegedly held the money that he obtained from the

victims in a now-defunct nonprofit organization, Hope for Life

Ministries, which was based in Mission Viejo. The group purportedly

focused on environmental health problems.

In July of 2000, the indictment states that Westover met with a

person identified as “Investor Nootens” to negotiate a deal where

Westover allegedly told Nootens he was raising money to help Ericsson

finance a merger. Nootens reportedly mailed a check in the amount of

$333,333 to Westover, made out at Westover’s request to Hope for

Life.

Westover allegedly deposited $330,000 from that check into Hope

for Life’s account at Citizen’s Bank in Laguna Hills. In May of 2001,

while claiming to represent Motorola, he allegedly convinced Nootens

to wire that account an additional $100,000, and obtained another

$100,000 from a victim identified as “Investor Misurec.”

The Federal Bureau of Investigation launched an investigation into

Westover’s dealings in 2003, McConville said.

“Investor Nootens” was identified as Raymond Nootens by his

daughter, Tricia Nootens, an attorney living in Capistrano Beach. She

and her father filed a complaint against Westover in Orange County

Court, and worry the money they allegedly lost will be gone forever.

“We don’t think we’ll ever recover a penny,” Tricia Nootens said.

One of the major victims, who asked not to be quoted by name, said

he knows of more victims who were not included in the indictment,

including a Florida investor who lost about $100,000.

Hope for Life filed a return with the Internal Revenue Service in

2000. The return lists 12 board members, including Westover as

president of the charity. The form states that Westover received a

$25,000 salary as president. No other board member is listed as

receiving a salary.

One of the men listed as a board member, Steven Bagley, 57, of

Lake Forest, said he was acquainted with Westover and knew of Hope

for Life, but had no involvement with the nonprofit and never even

gave the group a contribution.

“This is not good news,” Bagley said. “I was never on the board I

never participated in that.”

Balance sheets in the return state Hope For Life acquired more

than $1-million worth of contributions in 2000, liabilities exceeded

assets by almost $2,500.

Most of the group’s assets, more than $550,000 were in securities.

The return lists no pledges, grants or accounts receivable.

Hope for Life’s largest liability was a loan of more than $585,000

from Westover.

The indictment alleges Westover used funds made out to Hope for

Life to pay for personal expenses and investment. He was charged with

one count of mail fraud and two counts of wire fraud, and could spend

up to 60 years in prison if convicted of all counts.