In yet another twist in a sprawling real estate scam, two additional defendants have been charged for their roles in a $26 million fraud that duped Chinese investors. Stephen Wall, 65, and Saskya Bedoya, 42, face federal charges, including conspiracy to commit wire fraud and securities fraud, after being named in a superseding indictment earlier this week, according to the Department of Justice.
The deceitful duo allegedly worked with Timothy Lynch Barton to sell real estate investments in Texas, promising high returns and assurances of insider connections with U.S. politicians. Mr. Wall was pitched as a builder who would purchase lots and construct homes to sell, with Wall and Barton claiming to shoulder a substantial portion of the project costs themselves.
Investors were lured by the promise of annual interest for two years and the return on their initial investment shortly after that. In a classical bait-and-switch, the properties sold were grossly overvalued—some up to 195 percent beyond their worth, and many were never even bought. Early investors' returns came not from profits but from the pockets of later investors, a hallmark of a pyramid scheme.
Contrary to what investors were told, commissions were paid out of their funds. Worse still, their money was reportedly channeled into unrelated ventures, consultants, and even to settle a company's AmEx bill. The indictment lays bare that over $26 million was lost in this elaborate charade, as per the Department of Justice.
Two other defendants were connected to the scam—an admission of guilt already on the record. Mark Adams, 61, and Haoqiang Fu, better known as Michael Fu, 49, have pleaded guilty in September and October of 2022, respectively. The FBI's investigation ultimately brings them, and potentially Wall and Bedoya, to the bar of justice. If convicted, the accused could face up to 20 years behind bars for each charge. Their initial appearances are slated for December 22, 2023, before U.S. Magistrate Judge Rebecca Rutherford.
