Melvin Russell "Rusty" Shields, Michael Sims, and Sam Stafford, the three founders of S3 Partners who allegedly defrauded numerous individual investors and banks out of more than $21 million in connection with a real estate investment fraud scheme were arrested and arraigned on 33 counts of conspiracy, wire, mail, bank and securities fraud. [read post]

Melvin Russell “Rusty” Shields, 45, Granite Falls, North Carolina, and Michael Sims, 60, Gilroy, California, the founders of the S3 Partners, were sentenced to prison for investment fraud and fraudulently obtaining millions of dollars from banks by submitting forged and fraudulent invoices and loan closing documents. [read post]

According to the indictment, which was filed in San Jose federal district court on May 23 and unsealed on May 24, from 2006 to 2009, Melvin Russell “Rusty” Shields, 42, of Granite Falls, North Carolina.; Michael Sims, 58, of Gilroy, California; and Sam Stafford, 56, of Campbell, California, defrauded individual investors and banks in the Northern District of California and elsewhere in connection with various real estate development projects. [read post]