A Long Beach man was convicted Friday, March 16, of stealing $302,000 from investors by fraudulently promising to buy and re-sell foreclosed homes for a profit. John Wesley Martynec, 36, pleaded guilty to two felony counts of grand theft, one felony count of untrue statements in connection with a purchase or sale of securities and the use of a scheme to defraud, one felony count of financial exploitation of an elder, and a sentencing enhancement for property loss exceeding $200,000.
Martynec faces a maximum sentence of three years in state prison at his sentencing hearing, which has been scheduled for June 8, at 9 a.m. in Department C-5, Central Justice Center, Santa Ana.
Martynec, 36, of Long Beach, was originally charged with 33 felony counts, including eight counts of grand theft.
Martynec was arrested in August 2011. The Seal Beach Police Department announced the arrest in a Wednesday, Aug. 24 press release.
The investigation began on Dec. 1, 2010, after the SBPD received reports of real estate fraud involving losses of approximately $292,000.
According to the DA’s Office, Martynec took money from investors to buy and sell foreclosed houses. Prosecutors say that between August 2009 and August 2010, Martynec stole $302,000 from four investors, Patrick L. and Howard H., both 78, Howard H.’s son Michael H., and Chris L. Martynec told these investors that he had 10 years of experience in buying and flipping foreclosed homes for a profit. Martynec received money from investors, who believed it would go towards buying distressed homes. He did not purchase any property.
On Aug. 27, 2009, Martynec received $29,500 from Patrick L. and Michael H. after showing the victims a property. The defendant took an additional $63,000 from Michael H. to purchase another property. Martynec took a total of $92,500 from Michael H. The defendant also received $10,000 from Howard H.
In February, March and July of 2010, Martynec received a total of $70,000 from Patrick L. under the guise of purchasing other properties, which were never purchased. Martynec took a total of $99,500 from Patrick L. The defendant met Chris L. through Patrick L.
According to the Seal Beach Police, the investors placed their money with Samax Real Estate, LLC, a business with a Seal Beach address. Martynec was reportedly the only owner of the business.
However, police said Martynec never bought any properties.
At the time, Seal Beach Sgt. Steve Bowles said the city’s detective bureau determined that Martynec bought only one house with the money he had received from investors.
The SBPD did not identify the victims. The DA’s Office has identified four victims by first name and last initial only.
The DA’s Office accused Martynec of falsifying documents, including deeds of trust, investment summaries, and 1099 interest statements to his investors.
