Briefly in the news

Deepa Bharath

The Orange County district attorney has charged the owner of a Newport

Beach real estate investment company banker with securities fraud,

officials said.

Tustin resident Edward Raleigh McLaughlin, Jr., 41, is accused of stealing more than $3 million from investors through the sale of an

unsecured promissory note between November 1995 and January 1998.

McLaughlin appeared for an arraignment Thursday at the Orange County

Superior Court in Santa Ana on 21 counts of security fraud, sale of

unregistered securities and grand theft in the operation of his business,

McLaughlin & Associates.

The arraignment was continued until Dec. 21 at the request of

McLaughlin’s attorney. He is currently out on a $100,000 bail.

Officials said McLaughlin’s company was marketed as an international

real estate investment and management corporation. Investors were

promised an annual return of 10% on the notes and a return of their

principal after five years, they said.

The complaint alleges that McLaughlin defrauded eight investors out of

about $3 million, funds that were believed to be from victims’ retirement

accounts.

If convicted, McLaughlin could face up to 20 years in state prison and

millions of dollars in fines.

The investigation was conducted jointly by the Newport Beach Police

Department and the Orange County district attorney’s Economic Crimes

Unit.