By Dale Kasler
Five Sacramentans have been accused of running a $26 million real estate investment fraud.
A federal grand jury indicted the five in connection with an investment scam orchestrated by a company called Diversified Management Consultants Inc., or DMC. That company was an "umbrella organization" for a group of investment clubs with names like Genesis Innovations and Equishare Capital, the indictment stated.
The indictment said 180 investors were victimized by the scam. They were promised big profits, but instead their money was diverted to pay off earlier investors and to fund the defendants' "luxury lifestyle expenditures," the U.S. attorney's office said.
The leader of DMC, Michael Bolden, 57, was sentenced to 21 months in prison for an earlier investment fraud.
The other defendants were identified as Christopher Jackson, 43; Victor Alvarado, 50; Nicholo Arceo, 38; and his wife Erica Arceo, 43. All are from Sacramento.
Each defendant could be sentenced to up to 20 years in prison and fined up to $250,000.