Man is left homeless after being defrauded by Kailua man
A 42-year-old Kailua man pleaded guilty Thursday to a federal crime for defrauding a 78-year-old Orange County, Calif., man out of $1.814 million, leaving him homeless.
John Tamahere McCabe pleaded guilty to one count of wire fraud, the U.S. Attorney's Office of the Central District of California announced Friday.
McCabe initially offered to help the 78-year-old man sell his yacht.
Instead, McCabe used fabricated documents to change ownership of the yacht to his own name and diverted the proceeds of the sale to his own personal bank account, and used most of the proceeds for his own personal purposes, according to the plea agreement.
McCabe also convinced the man to transfer his $1 million home in Irvine, Calif., to a limited-liability company McCabe controlled.
He told the victim that this would protect his most valuable asset and provide tax benefits.
As sole manager of the LLC, McCabe also took out $1 million in loans secured by the man's house and drained it of all its equity.
He then defaulted on the loans, and the man's house was foreclosed on, leaving the 78-year-old homeless.
U.S. District Judge Fred Slaughter scheduled McCabe's sentencing for Oct. 16. The 42-year-old faces a statutory maximum sentence of 20 years in federal prison.
The FBI, with the help of the Irvine Police Department, investigated this case.
First Assistant U.S. Attorney Jennifer Waier is prosecuting this case.
The Judiciary urges anyone who is 60 years of age or older who has been a victim of financial fraud, or knows someone who has been, to call the National Elder Fraud Hotline : 833-FRAUD-11 (833-372-8311 ). This Department of Justice hot line, managed by the Office for Victims of Crime, is staffed by professionals who provide personalized support to callers by assessing victim's needs and identifying next steps.
Reporting can aid authorities to identify perpetrators of fraud, and reporting certain financial losses due to fraud quickly can possibly increase the chances of recovering losses.
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