Saratoga Man Faces Elder Fraud Charges

Police are releasing safety tips to guard against financial crimes and frauds following a six-month investigation into a man suspected of posing as a tax accountant to steal money.

Lewis E. Lee, 71, of Saratoga, was arrested in September following a San Mateo Police Department's investigation into a complex financial scheme in which Lee allegedly acted as a tax accountant and financial adviser to gain the confidence of elderly residents before stealing their money.

San Mateo Police Sgt. Dave Norris said authorities began their investigation into the scheme in March.

Lee targeted elderly persons by offering and providing seemingly legitimate tax preparation and other financial services, Norris said.

Lee does not hold any legitimate tax, accounting, or business licenses, according to Norris. Lee was described as charismatic, friendly, charming, generous, and very knowledgeable on financial matters. A majority of the elderly victims were referred to the suspect by friends or family members.

As part of his elaborate criminal activities, Lee created the Lewis E. Lee Company, opened a retail office, and created a website as a means to promote the illusion of his credentials and credibility, according to Norris.

Lee would prepare a potential victim’s taxes for a few years while befriending them, eventually enticing them to invest a substantial amount of money for the purchase of stock options or in an investment club, Norris said.

San Mateo police's extensive investigation revealed that Lee appears responsible for committing fraud against numerous victims. Financial losses to these victims total in the hundreds of thousands of dollars.

In September, search warrants were served upon the suspect’s business and residence. He was arrested and this case is with the San Mateo County District Attorney’s Office for prosecution.

Lee is out of custody on $100,000 bail. His website appears to still be operational, according to police.

SAFETY TIPS ON FRAUD CASES:

The San Mateo Police Department reminds the public to always verify the license status of a business through the State of California Secretary of State’s website, http://www.sos.ca.gov.

The public can verify the status of an accounting license through the California Department of Consumer Affairs’ California Board of Accounting located athttp://www.dca.ca.gov/cba/lookup.shtml. The public can verify the status of attorney http://www.calbar.ca.gov.

Here is a list of other Internet resources to verify the validity of someone or a business before giving it your hard earned money:

• Better Business Bureau - www.bbb.org
• California Department of Corporations - www.corp.ca.gov
• California Department of Financial Institutions - www.dfi.ca.gov or www.fdic.gov
• California Department of Insurance - www.insurance.ca.gov
• California Office of Privacy Protection - www.privacy.ca.gov
• California Department of Real Estate - www.dre.ca.gov
• Cemetery and Funeral Bureau - www.cfb.ca.gov
• U.S. Securities and Exchange Commission - www.sec.gov/investor/seniors.shtml
• Federal Trade Commission - www.ftc.gov
• Senior Legal Hotline - (916) 551-2140 or (800) 222-1753 - http://slh.lsnc.net

Residents may file a complaint with any of the above government entities if they feel someone or a business does not have a license in the State of California.

Anyone with information on current investigations or ongoing crime trends is encouraged to contact the San Mateo Police Department: 

• SMPD Investigations Bureau: 650-522-7650 
• SMPD Secret Witness hotline: 650-522-7676 
• Anonymous Text to SMPD: 650-262-3473

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