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District Attorney Charges Man in $9 Million Real Estate Fraud

For release on September 25, 2020

CONTACT:

Georg Behrens
Deputy District Attorney
Real Estate Fraud Unit
(408) 792-2964

District Attorney Charges Man in $9 Million Real Estate Fraud

A 40-year-old Union City man has been charged with 50 felony counts of securities fraud and grand theft based upon a real estate investment scheme that he operated under the name Citadel Real Estate & Investments between 2014 and 2018.

Carl Le was arrested on September 16 at his parents’ home in Union City. He was arraigned on September 21st at the Hall of Justice in San Jose. If convicted, Le could face incarceration. His next court date is scheduled for December 8th.

Deputy District Attorney Georg Behrens said: “Please beware of individuals or investments that promise improbably high returns. We will prosecute those who illegally take advantage of investors by withholding vital information from them or misleading them about what they are investing in.”

Le raised money from investors in Citadel, a house-flipping business, by selling short-term, high-interest promissory notes. He is charged with defrauding investors by misrepresenting or failing to disclose material facts about Citadel’s financial condition, its ability to carry out the construction projects it had taken on, and the deed-of-trust security that it had promised to note-holders. It is estimated that the scheme caused a total loss of approximately $9 million to more than 20 investors. Individual investors lost between $50,000 and more than $1 million.

Anyone with information about Le or the charged crimes may contact law enforcement by calling District Attorney Investigator Jennifer Dalton at (408) 792-2332.

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Last updated: 9/25/2020 12:53 PM