Two Pierce County businessmen have been indicted in federal court in New York with conspiracy to commit securities and wire fraud, the U.S. Attorney’s Office announced Wednesday.
William C. Lange, 63, and Joseph G. Pascua, 49, are accused of defrauding hundreds of people of more than $9 million using two alleged schemes, the attorney’s office said.
Lange is president of Harbor Funding Group Inc. of Gig Harbor. Pascua is president of Black Sand Mine Inc. of Lake Tapps.
The two promised developers financing to build homes in areas hit by Hurricane Katrina. Potential investors were required to pay a 10 percent fee to access the financing, federal prosecutors allege.
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“Lange and Pascua did not have the money to finance the loans, but nonetheless kept the 10 percent fee,” according to prosecutors.
The second scheme involved tricking people into investing in an Alaska mining operation, the profitability of which Lange and Pascua lied about, federal prosecutors contend.
“The defendants in this case are charged with executing two bold schemes to defraud their clients and investors of millions of dollars,” said Loretta E. Lynch, U.S. attorney for the Eastern District of New York.