Lending-scheme case set for trial | TheUnion.com

Lending-scheme case set for trial

An Alta Sierra woman’s trial on charges that she took part in a multimillion-dollar lending scheme has been set for next winter.

Daisy M. Burlingame, 60, and her five co-defendants are scheduled to go to trial Jan. 14 in U.S. District Court in Santa Ana, according to court spokesman Thom Mrozek.

A federal grand jury in January indicted Burlingame and the others – all associated with the loan brokerage firm Morgan Weinstein & Co. in Southern California.

They’re accused of charging victims worldwide millions of dollars in advance fees and failing to provide billions in loans. The firm pocketed the fees with promises they’d be returned if the loans fell through, but refunds were rare, according to court documents.

When refunds did occur, they allegedly came from other customers. Such a practice is also called a Ponzi scheme, named after 1920s Boston swindler Charles Ponzi.

Burlingame was a new-projects manager with Morgan Weinstein, according to the U.S. Department of Justice.

The others are Morgan Weinstein chairman Richard A. Parker, 78, of Laguna Niguel; president Richard A. Parker II, 54, of San Juan Capistrano; senior analyst David A. Feldman, 62, of Fallbrook; analyst Donald L. Allen, 44, of San Diego; and Wayne Chan, 51, of Vancouver, B.C., Canada, who allegedly acted as a reference.

So far, Mrozek said, the defendants are scheduled to be tried at the same time.

Burlingame’s reported lawyer, Diane Cavanaugh of Newport Beach, didn’t return a Monday call to her office. The case’s lead prosecutor, Joel Leising of the U.S. Department of Justice, was busy with another trial and unavailable for comment, a secretary at his Washington, D.C., office said.

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