Real Estate Agent Who Targeted Elderly Residents Sentenced

A North Hills real estate agent and self-described investor was sentenced today to five years in federal prison for operating a Ponzi scheme that conned dozens of victims out of at least $2.3 million.

Celia Gallardo, 42, was immediately handcuffed and taken from the courtroom after the sentencing hearing.

"I just don't trust her,'' U.S. District Judge Dean D. Pregerson said, describing Gallardo's scheme as a "particularly aggravated ... pure rip-off'' that often targeted elderly residents of Valencia, Simi Valley, Silver Lake and elsewhere.

Gallardo -- who is also known as Celia Zagha -- bilked investors who put money into her supposed Santa Clarita-based, year-long real estate investment program. Prosecutors said she told investors she would purchase condominiums in other states and that the properties would yield extremely high rates of return in very short time periods -- as much as 100 percent return in only 30 days.

Instead, Gallardo spent most of the money on personal expenses, including her home, a Mediterranean cruise with close friends and family, cash withdrawals, luxury cars and to repay earlier investors to perpetuate the scheme, according to the government.

Victims lost more than $2.3 million, prosecutors said.

Several victims spoke at today's hearing, telling Pregerson in Los Angeles federal court that they lost retirement savings and home equity lines of credit to Gallardo.

"Like many scam artists, Ms. Gallardo's first victims were her family and friends,'' victim Lillian Jones testified. “She used and betrayed the people closest to her.''

Rebecca Essman, 70, told Pregerson that Gallardo conned her out of the entire savings she and her late husband had saved for their retirement.

In a brief statement, Gallardo said, ``I feel their hurt and I'm sorry.''

After Gallardo was taken from the courtroom, Pregerson spoke to the victims privately in his chambers.

Valencia resident Helene Dorman, another victim of the scheme, said outside court she was gratified when Gallardo was ordered into custody at the conclusion of the hearing, which evidently came as a surprise to the defendant.

“She wasn't expecting that,'' Dorman said.

Along with the prison term, Pregerson ordered Gallardo to pay restitution of about $2.3 million and serve three years of supervised release after her release from prison.

Gallardo pleaded guilty last October to a single count of wire fraud.
She was arrested in July 2012 by FBI agents and charged in a 16-count federal indictment with wire and mail fraud.

-       City News Service