Investment Fraudster that derailed Hoffman Campaign Sentenced
Chartraw's arrest and disclosure of his relationship with his lawyer, Joe Hoffman, coincided with the run-up of Hoffman's campaign. Court papers implicated Hoffman's participation in the fraud and undermined his campaign for the Judgeship. No BAR actions have been seen in Hoffman's relation to the case and the conviction of Chartraw includes useing forged letters. Hoffman has announed that he is making another run at the Judgeship in the next election.
Daniel Chartraw, 40, formerly of El Dorado County, was sentenced in federal court in Sacramento today to four years and nine months in prison for an investment scam. Chartraw was also ordered by U.S. District Judge Morrison C. England Jr. to pay $2.8 million in restitution. Chartraw ran his scheme from January 2007 through November 2011.
In his plea agreement, Chartraw confessed to stealing millions of dollars from investors by telling them he could invest their money into precious metals, mining, equipment and other investments. In fact, he forged letters to get access to his investors’ escrow accounts. Many of his victims submitted letters discussing the effect of Chartraw's fraud on their finances and their families, according to a federal Department of Justice news release.
According to court documents, between Jan. 1, 2007, and Nov. 31, 2011, Chartraw defrauded investors through false representations regarding a variety of investments, including investments in mines, mining and refinery equipment, oil commodities, precious metals concentrate, and multimillion-dollar certificates of deposit.
In one instance, Chartraw stole $1 million by fraudulently posing as an owner and manager of a company selling "dore" bars, which he claimed contained precious metals. Chartraw arranged for an investor to tour the company and managed to limit the investor's contact with the company's true owners to prevent discovery of his scheme.
When the investor placed $1 million in an escrow account for purchase of the dore bars, Chartraw used a forged letter to get the escrow company to send the money to accounts he and others controlled, officials said.
The U.S. Attorney’s Office in Sacramento seized Chartraw’s 2011 Cadillac Escalade in a civil forfeiture and sold it for $50,500, which will go to victims.