Construction Company Owner Gets 9 Years for Fraud
By edhat staff
The owner of a local construction company has been sentenced to 9 years and 4 months in prison for fraud on Thursday.
Mark John Melchiori owned Melchiori Construction Company and pled guilty last year to one count of felony diversion of construction funds, one count of felony prevailing wage fraud, and one count of felony unlawful money transmission. Melchiori also admitted a special allegation that the amount taken was in excess of $100,000 and an aggravated white-collar crime enhancement that the amount he took was in excess of $500,000.
The charges stemmed from a complaint by Robert Zemeckis, a film director, screenwriter, and Acadamy Award-winning director. Zemeckis stated he paid Melchiori Construction Company $500,000 in 2012 to remodel his home, but Melchiori illegally used the money for his own purposes. Zemeckis testified that due to Melchiori's fraud and failure to pay subcontractors, a lien was placed on his causing causing total damages closer to $1 million.
Melchiori was also accused of misappropriating $10 million from his company and using the funds to purchase a $2 million house, luxury vehicles, and host lavish parties.
With the assistance of both the California Department of Insurance and the California Department of Industrial Relations, the District Attorney’s Office also found that Melchiori had been underpaying his workers on public works projects to finance his lifestyle and that he had been funneling money through various companies to cover up his crimes.
Judge Jim Herman sentenced Melchiori to the maximum sentence of 9 years and 4 months.
Related Articles
- October 19, 2019: Construction Company Owner Pleads Guilty to Fraud
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Feb 21, 2020 01:26 PMCompare and contrast what misdeeds it took to get a 9 year jail sentence in Santa Barbara (Mark Melchiori) to what misdeeds it took to get a 9 year jail sentence thrown at you in Wash DC (Roger Stone).
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Feb 21, 2020 02:21 PM... and reduced to 3.3 years.
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Feb 21, 2020 02:45 PMReported today in the N-P Melchiori will probably be out in five.
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Feb 22, 2020 07:00 AMWhich has been drastically reduced already.
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Feb 23, 2020 11:22 AMStone NEVER was sentenced to 9 years. MAGA propaganda aside, that was only a recommended top range of sentence based on federal sentencing guidelines. In fact he was sentenced to less than half that and will do some portion of that should Trump not commute or pardon him. One should think that perjury in testimony before Congress and threatening witnesses against Trump and himself is a serious crime and the actual sentence imposed is certainly within just boundaries.
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Feb 21, 2020 03:52 PMWhite collar crime in this country is usually dealt with by a "slap on the wrists" by the current judicial system. It's getting rapidly worse too in this country. "SAD"
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Feb 22, 2020 08:10 AMNine years seems to me to be more than a "slap on the wrist" however.
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Feb 22, 2020 08:19 AMProbably do half if even that...
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Feb 21, 2020 09:41 PMnothing off about Melchiori as an exemplary contractor other than he got caught twisting funds (and a family member turned him in)... so it goes
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Feb 22, 2020 08:11 AMNot a family member, a customer Zemeckis, filed the complaint that led to his arrest and trial.
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Feb 22, 2020 02:31 AMThank you, Mr. Zemeckis for coming forth.....
and 1's time to see it thru.
A con artist gone
air is sweeter
heart lighter
a pollution dimming
kind of attacks to soul
and surf
jj
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Feb 23, 2020 02:53 AMCare to translate into normal people English?
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Feb 23, 2020 10:09 AMAYE matey
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Feb 22, 2020 03:01 AMInteresting that Zemeckis hired him in *2012.* By that time, Melchiori Construction was well-known in a bad way for things like the UCSB Ocean Science building the company was fired from and the SB County Emergency Ops building; wasn't his reputation already basically trash in SB? At least look at the red flags, do a google search for news articles and run anyone you're considering hiring through contractor licensing board web sites.
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Feb 22, 2020 03:13 AMPretty terrible. I know someone who was part of the business -- who trusted and tried to help. Might be the person talked about here by the ex-wife who gave a victim impact statement. ================
https://www.independent.com/2020/02/20/construction-mogul-gets-nine-years-for-bilking-movie-producer/
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Feb 22, 2020 06:59 AMWhat a shame. His father worked hard, built the company and was honest. High-living on someone else's funds seems to be a problem for some who grow up as very privileged children w/o having to put anything in. It happens in not-so-wealthy families, too. Unless responsibility & work ethic are taught as linked to benefits to children, benefits become entitlements in adults who lack moral fiber.
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Feb 23, 2020 02:52 AMI see your point to an extent, but Melchiori Jr. hurt people to the point of destroying lives and monetary futures. Any and every one who has followed this case is pretty far beyond "what a shame." What a shame doesn't touch his crimes. Sorry, I don't mean to attack you, I'm just upset about the whole thing.
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Feb 22, 2020 04:54 PMIf it is true that "white collar" crime usually gets a slap on the wrist, why then is Melchiori's sentence the maximum?
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Feb 22, 2020 04:58 PMCheck the meaning of the word "usually" in the dictionary.
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Feb 22, 2020 05:36 PMPlease get someone to introduce you to the concept of "critical thinking skills." No one has either the time or space to do this for you here.
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Feb 24, 2020 02:48 PM9 years, less with time off for good behavior, in a minimum security prison where white collar criminals are housed, seems like a good deal. He stole a bunch, maybe millions including the bank loans. If you rob a 7-11 with a gun and get 50 bucks it is a mandatory 20 years.
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Feb 22, 2020 10:52 PMMyself and 60 other homeowners were recently victims of a similar crime. Riverwood Cabins took 50% deposits on the modular homes that they did not deliver after filling for chapter 7. They are now offering $3,000 per costumer. I lost $170,000. The bankruptcy courts accept this sort of deal. I am paying a loan for 20 years for this deposit, which Kent Lapp took and used it. He goes free and I keep paying the loan for nothing. How is this justice? Beware, our legal system favors the business, not the consumer in these cases. Even our president has done this 4 times and messed up the lives of many poorer people who could not afford to lose money.
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Feb 23, 2020 02:37 AMNot exactly similar and doesn't seem to involve Santa Barbara, but I might've missed it, as I only scanned the news. Companies sell stuff and then declare bankruptcy every day. Melchiori did badly by dozens of subs, had issues for many years, and did really bad stuff that involved and affected his family members and people, with most to lose, at top of his company. Whatever.
=======================================================================
https://www.tennessean.com/story/news/2020/02/14/franklin-cabin-company-filed-bankruptcy-under-police-investigation/4763382002/
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Feb 23, 2020 02:43 AMSorry. I DO sympathize. Yes, of course your complaint is valid. Yes, those with money always come out on top, I agree. Justice IS always for sale, as a good defense costs a boatload of money. Nope, there seems to be no justice, but this case is very recent; it can and will take years to litigate or settle this stuff. My best wishes for you and yours in this case and in life in general.
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Feb 23, 2020 03:03 AMIs this Kent Lapp from Riverwood the same as the one who puts out "Salt and Fire"? I don't trust those people myself. Too much self-promotion, not enough personal American good values.
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Feb 23, 2020 03:13 AMHis stepmother sued him claiming his divorce from his wife Heather was a scam to hide assets. Anyone know what became of that? Also Rabobank was suing in now ex-wife for 1.3 million for not paying back a business loan. Anyone know of that status? What a great family!!!
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Feb 23, 2020 05:28 AMGood question! This is one criminal who deserves his time but then might be worthwhile to live in an SRO, if there are any left, and work at the highest level he's allowed and able to and every single frigging penny beyond subsistence goes to restitution! And I mean subsistence: a single room with heat, plumbing, including hot water, and general electricity on demand. I'll even give him tv and/or internet access. He can get by great with access to a hot plate, microwave; a rice cooker and toaster oven makes great meals. Hey, he could work on solar panel installation or any form of retrofitting when he gets out, maybe in the Rust Belt. He should be useful.
https://www.noozhawk.com/article/102312_former_vp_sues_melchiori_401k_money/
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Feb 23, 2020 05:38 AMSome background. Of course there's more info than this: ---------------------------------------------------------------
https://www.noozhawk.com/article/091612_mark_melchiori_linda_melchiori/
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https://www.noozhawk.com/article/112812_santa_barbara_news_melchiori_construction_criminal_probe/ ---------------------------------------------------------------
https://www.noozhawk.com/article/102312_former_vp_sues_melchiori_401k_money/
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https://www.noozhawk.com/article/mark_melchiori_pleads_guilty_in_construction
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Feb 23, 2020 08:14 AMWhere did this money go (from 2011)?
Melchiori Wins $5.8 Million in Chapala One Fraud Case.
https://www.independent.com/2011/05/12/melchiori-wins-5-8-million-chapala-one-fraud-case/
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Feb 23, 2020 10:26 AMTwo facts of life that people simply can't get a hold of it seems:
1. Business corporations can escape their financial obligations by simply walking away. This includes bankruptcy. The purpose of incorporating is to allow this to happen. It is by design.
2. Government cannot simply walk away.
So when advocates for "privatization" of government functions push their schemes on us we need to remember who will be their when the schemes go wrong.