CASE OF INTEREST

Date: March 5, 2003
Case: People v. Alden Jonathon Appleton
Contact: Albert Locher, Assistant Chief Deputy District Attorney, (916) 874-6150

District Attorney Jan Scully announced that Alden Jonathon Appleton has been sentenced to prison for an annuity fraud scheme involving four families and over $680,000. The case concerned eight incidents in which Appleton counseled the victims, who were fellow church members, to place money with his business to get an annuity. The source of funds was either a mortgage taken out against a residence, or retirement funds. Once he had the money, Appleton directed it into checking accounts of his business, "First Financial." The funds were then used for a variety of business expenses, but not to the benefit of the victims. No annuity was ever obtained for any of the victims.

Appleton pled no contest to four counts, and agreed the court could consider the facts all eight incidents. Immediately after the plea, Judge David De Alba sentenced Appleton to seven years in state prison. Judge De Alba also ordered that restitution be paid to the four families.

Appleton had been the subject of an earlier consumer fraud civil action by the District Attorney's Office involving hundreds of mortgage refinance customers. In that case, the court found that Appleton had misled his customers. He was ordered to make restitution to those customers and pay a fine of $1.25 million. Also as part of that the judgment, in August of 2001 the "First Financial" business was placed in receivership.

Assistant Chief Deputy D.A. Albert Locher, who prosecuted the case, said, "This conviction and prison sentence sends a strong message to white collar criminals - if you lie and take people's money, you will pay the price."

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