Bail Set at $11.3 for Lake Forest Man Charged in Massive Ponzi Scheme

Photo: Joseph Francis Bartholomew, Photo Credit: Orange County District Attorney’s Office

A Lake Forest man remains in jail with bail set at $11.3 million as he awaits trial for allegedly masterminding an massive Ponzi scheme.

Thursday attorneys for Joseph Francis Bartholomew, 75, and co-defendant Wendy King-Jackson, 54, asked that their arraignment be pushed back to January. According to authorities, the two were part of a $11 million ponzi scheme that victimized more than 27 people.

Bartholomew, is charged with 29 felony counts for allegedly making false promises to clients who believed they were making legitimate securities investments. If convicted, he faces up to 42 years in state prison. Bartholomew remains in jail with bail set at $11.3 million.

King-Jackson, of Laguna Niguel is charged with three felony counts for allegedly misleading investors. She faces up to 16 years in state prison.

Bartholomew owned and ran MBP Insurance Services, Inc. (MBP), which offered and sold unsecured securities based on fraudulent insurance policies, say investigators. From July 2005 to May 2014, Bartholomew falsely promised clients that he would be able to provide a return of 15 to 40 percent in interest from their investment, according to the Orange County District Attorney’s Office.

King-Jackson worked at MBP as an insurance agent. Investigators allege she sold unsecured securities based on fraudulent insurance policies by misleading clients that the policies were legitimate when they were not.

By 2013, Bartholomew stopped making any payments to investors, and his clients were out $11 million, according to prosecutors.