Dana Point Yacht Broker Denies $1.5 Million Fraud Scheme

A former yacht broker from Dana Point pleaded not guilty today to charges of cheating 26 people out of $1.5 million in an alleged investment scheme.

Edward Sellers Fitzgerald, 60, was the owner of Dana Island Yacht Sales and Charters when he allegedly stole from his victims between 2007 and July 2009, according to the Orange County District Attorney's Office.

Prosecutors said Fitzgerald committed various investment schemes, such as getting loans from friends to buy boats for resale, but never getting the boats and spending some of the money on himself.

They also accuse Fitzgerald of getting new investors to pay off old investors.

Fitzgerald sold yachts on behalf of clients while embezzling the profits and either failing to pay it back or sending them checks that bounced, prosecutors said.

Fitzgerald took money for deposits on some yachts and then failed to follow through or return the deposit, according to prosecutors.

Fitzgerald withdrew all the money in his bank accounts and moved out of state without telling any of his investors or clients and not providing forwarding information, authorities said.

Fitzgerald was arrested May 10 in Delray Beach, Fla.

- City News Service