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Records Seized in Inquiry Into Financial Scheme

November 05, 1986|Associated Press

SAN FRANCISCO — Authorities have seized the financial records of a San Francisco real estate broker who vanished amid the collapse of a suspected million-dollar financial scam.

Eugene V. Borelli of Pyramid Realty Co. disappeared Oct. 23. He is alleged to have built an investment system that relied on funds from individual investors, including family and friends.

The district attorney's office used a search warrant Monday to obtain the records from the law firm of Niesar Kregstein & Cecchini, which represents Borelli's family.

The documents traced thousands of transactions over several years and filled 160 boxes.

Joint Inquiry

Dist. Atty. Arlo Smith said the documents are the basis of an investigation by his office, the state Department of Real Estate and the state Department of Corporations.

The investigation should be completed by the end of the year and charges may follow soon afterward, said Ed Chiolo, manager of the San Francisco office of the state Department of Real Estate.

Smith said 800 investors may lose $15 million to $25 million.

Investigators said Borelli told investors that their funds were secured by single family homes. However, in many cases the value of the investments far exceeded the value of the property.

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