Robert Cirillo of Chino Hills was sentenced to six and a half years in federal prison Sept. 6 after pleading guilty to defrauding “low-income Hispanics” and persuading them to invest in construction loans he never intended to pay back.
Cirillo will also have to pay $3.9 million in restitution. He pleaded guilty to securities fraud, false tax return and conspiracy to commit wire fraud June 28.
“Defendant orchestrated and ran a huge investment fraud scheme where he stole more than $3 million from over 100 victims by tricking them into investing in his bogus construction loan scheme, using both lies and fake documents. What he failed to tell the victims was that he was not using their money for purported investments, but rather, he was spending their money on himself, including more than $1 million in cash withdrawals,” prosecutors wrote in a sentencing argument.
The plea agreement laid out the facts of the case.
Cirillo convinced more than 100 victims in San Bernardino County and Orange County he could invest their funds in short-term construction loans that could return as much as 30% after 90 days. To prove he could deliver, he showed fabricated bank statements. One victim invested her retirement savings of $20,000.
Instead of investing the $3.2 million, Cirillo used $100,000 to help pay off his personal credit card debt, spent $138,000 at Caesar’s Palace in Las Vegas, spent $12,000 as a down payment for a Jeep and $10,000 as a down payment for an Alfa Romeo.
The fraudster also admitted in his plea agreement to threatening his fraud victims, telling one he would send him to a hole in the desert.
“Let him get a lawyer and watch what happens, OK. Wants to make [expletive] problems for me, I’ll cost him a million dollars in lawyer fees. You tell him I said that. Or he could always elect to go, rather to go, for the [expletive] hole in the [expletive] desert. Tell him to test me,” he said to an investor who threatened legal action, according to the plea deal.
Some of the investors begged for their money back to take care of sick relatives. One requested $500 back to pay for his father’s funeral, according to the prosecutor’s documents. He told one victim to cancel their wedding, after they began asking for their investment back to pay for the wedding venue, according to the prosecutor’s documents.
According to prosecutor’s documents, Cirillo began the fraud in June, 2014.
In a second scheme for which he was also charged, Cirillo, with the help of others, scammed an 82-year-old grandfather out of $400,000 by convincing him his grandson had been arrested for possession of illegal narcotics, and that the grandson needed the money to post bail.
The money went through his bank account. Cirillo’s lawyer, in a sentencing memorandum, said he was not involved in that scam, and that his only connection to the scam was his bank account.
He also filed false tax returns that did not report $3 million in income.
The Spanish language channel Univision ran a story on Cirillo in 2019, before the federal government filed charges against him. They received an Emmy for their investigation. Investors defrauded by Cirillo reported him to federal authorities after the Univision reporting, according to the plea agreement.
He also discussed committing credit card fraud and identity theft in May, 2019.
His wife, Molly Cirillo, requested a low sentence for her husband. In her letter, Molly said Robert Cirillo has always made his family his No. 1 priority, and that he made an annual family tradition of donating toys to the local fire station’s Christmas toy drive.
“Our family (which now includes our 10-month-old granddaughter) and our entire community needs Rob and will continue to love and support him,” she wrote.
Cirillo’s niece also wrote a letter requesting a lower sentence. “I believe his mistakes were sourced from his desire to be a great provider to his family. That is not an excuse but an explanation. He is remorseful and told me he is committed to making things right,” Erika Ledesma wrote.
His daughter, son, stepchildren, brother, sisters-in-law and friends also wrote letters of support.
Ten victims wrote letters to the court under seal.
“Mr. Cirillo has no remorse for his actions, and I believe he already has plans for his next scheme to defraud more families of their money,” one pair of victims wrote, in an excerpt released out of seal.
“Robert is manipulative, cruel, and uncaring for those he affects. It makes me angry he has affected so many families that have given their savings in hopes they could grow that money more. Instead we have been lied to and cheated on. We ask for justice, and hope all the money from the people he had stolen from be returned. I hope Robert Louis Cirillo can not continue scamming hardworking and honest people,” wrote another victim.
Assistant United States Attorney Charles Pell represented the people.
Ron Hedding of Encino’s Hedding Law Firm represented Cirillo.
Case number 8:22-cr-00077.
Read the information here.
Read the plea agreement here.
Read the defense’s sentencing memorandum and letters of support here.
Read the prosecutor’s sentencing memorandum here.
