Calif. woman pleads guilty to defrauding investors

AP News
Posted: Dec 18, 2009 11:41 AM

An Emeryville, Calif., woman remains in federal custody after prosecutors say she admitted to defrauding hundreds of investors out of more than $8 million.

Patricia Morgen appeared in court Wednesday where prosecutors say she pleaded guilty to two counts of mail fraud, two counts of wire fraud, and one count of money laundering.

In pleading guilty, Morgen admitted that through the company she founded called Chicago Development and Planning, she defrauded more than 400 investors who thought their money was going into real estate investments.

Morgen also admitted to defrauding a mortgage broker and lenders through a separate fraud scheme.

As part of a plea deal, Morgen agreed to make restitution of more than $8 million.

The 62-year-old Morgen is due to be sentenced in April.