Three men who operated a Huntington Beach firm have been indicted on charges of bilking investors out of $2.6 million by selling them promissory notes on nonexistent car loans, federal authorities said Thursday.
The men allegedly promised a 10% return on a typical minimum investment of $25,000, but kept most of the money for themselves, according to the U.S. attorney's office in Santa Ana.
Those charged were Paul J. Booth, 74, and James Cunningham, 44, both of Costa Mesa, and Donald L. Roat, 50, of Waldport, Ore. Booth and Roat will be arraigned July 16. Cunningham remains at large.
Booth and Cunningham formed CBN Financial Resources Corp. in July 1997, and Roat joined the operation, also known as Trans Lending Co., later that year, Assistant U.S. Atty. John Rayburn said.