Alleged Ponzi scheme conspirators arraigned Tuesday - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Alleged Ponzi scheme conspirators arraigned Tuesday

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SAN DIEGO, Calif. (CBS 8) - Two of the four people indicted in an alleged Ponzi scheme targeting a South Bay Filipino community have pleaded not guilty.

Edmundo Rubi, 52, and Joseph Encarnacion, 59, are charged with 54 felony counts.

A judge ordered Rubi held on $5 million bail and Encarnation on $1 million bail. Each faces up to 15 years in prison if convicted.

According to the indictment, Rubi and Encarnacion recruited several people from a previous Ponzi scheme, in addition to other members of the Filipino community for an investment scam called "Apocalypse Trust" and "Amerisian Trust."

The scam required those who participated to quitclaim 34 properties into trusts owned by Rubi. Under a quitclaim, the title to a parcel of real estate is transferred to another owner, trust or corporation.

Benjamin and Gloria Hebron, who were also indicted, are free on bail. They are scheduled to be arraigned on Thursday.

Investigators say as part of the scam, 22 people transferred 34 properties into fraudulent trusts.

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