David Nilsen, "Monterey's Madoff," Pleads Guilty to Real Estate Investment Fraud
October 24, 2011
Former Cedar Funding President David A. Nilsen of Seaside pleaded guilty in San Jose's federal district court today to a single count of conspiracy to commit mail and wire fraud, according to a statement released by U.S. Attorney Melinda Haag.
Nilsen's plea deal, which includes paying nearly $70 million in restitution. amounts to an admission of deceiving investors in Cedar Funding, his Monterey-based private money lending company.
Nilsen, 61, was indicted by a federal grand jury on Sept. 8, 2009 for allegedly orchestrating a Ponzi scheme which entangled more than 1,500 investors, most of them local. He was released on $1 million bond, but now faces 97 months in federal prison followed by three years' supervised probation.
U.S. District Court Judge Edward J. Davila will formally sentence Nilsen Feb. 27, 2012.