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Businessman Sued for Casino Scam

CALIFORNIA – As reported by the LA Daily News: "The state Department of Corporations has filed suit against a Los Angeles businessman, claiming he conned 25 investors nationwide out of $1.5 million for a bogus casino planned near Six Flags California, Valencia.

"The complaint filed in Los Angeles Superior Court claims Tom Kelly, a manager of First California Diversified Fund LLC, used the names of three American Indian tribes to convince people to invest $25,000 a share for an interest in the casino.

"None of the tribes Kelly mentioned had authorized the use of their name in pamphlets he distributed, according to the complaint. And investors who tried to contact the tribes to research information about the casino were directed to a telephone number operated by Kelly, according to the complaint.

"…Wong said the department is still waiting to hear from Kelly, who is charged with a total of 62 violations that include selling shares using untrue statements, according to the complaint. The state is seeking more than $1.5 million in restitution for the victims, but officials said more fines are possible…"

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