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          SANTA ANA, California – An Orange County man was sentenced today to 46 months in federal prison for running a program that purported to offer short-term loans, but was nothing more than an investment scam that caused more than $3 million in losses to victims.

          J. Michael Clancy, 58, of Rancho Santa Margarita, was sentenced today by United States District Judge David O. Carter, who also ordered him to pay $3,003,084 in restitution. Clancy pleaded guilty in March 2019 to a single-count information charging him with wire fraud.

          From July 2014 until July 2016, Clancy operated Multiplied Equities and Quantum Capital California LP, both located in Lake Forest, which he claimed offered short-term loans secured by real estate. Clancy sold partnership interests to investors, telling them their funds would be used to make short-term loans. Clancy further promised to sell the loans to outside investors, which would earn profits for his victims and free up funds to make additional short-term loans.

          Instead of using his victims’ funds as promised, Clancy used the money to operate a house-flipping scheme, purchase a personal residence in Silverado Canyon, pay family members, and make “interest” payments to earlier investors in the scheme.

          In total, 11 victims lost $3,003,084 as a result of the scheme.

          This matter was investigated by the Federal Bureau of Investigation.

          This case was prosecuted by Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office.

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