Suspect to be arraigned in investment scam

By Tiffany Gibson

Friday, Dec. 18, 2009 | 6:02 p.m.

A Justice Court felony arraignment for a Las Vegas man who is suspected of scamming millions of dollars from dozens of victims worldwide has been scheduled for 8 a.m. on Jan. 8.

Jamal Eljwaidi, also known as Jean Marc Eljwaidi, is charged with six counts of elder exploitation, a felony, for taking investors’ money for real estate development and spending it on himself.

A status check was set this morning to in front of Justice of the Peace Joseph Sciscento to confirm Eljwaidi’s appearance and arraignment in January.

According to a criminal complaint, Eljwaidi scammed a senior citizen man who suffers from mental incapacitation out of $400,000 by promising to make the man an equal business partner.

Instead, Eljwaidi used up to $600,000, including the man's money, to live a lavish lifestyle while leaving the elderly man destitute.

Investigators from the Secretary of State Ross Miller’s office said Eljwaidi and his employees called potential investors between March 2005 and March 2007 and persuaded them to invest in short-term loans for a shopping center project on 9.23 acres of land near Russell Road and the 215 Beltway in the southwest Las Vegas Valley in exchange for high interest payments.

The shopping center, hotel, theater and restaurant complex was supposed to be completed in October 2009, but so far it is an empty desert lot, Miller said. It is next to Eljwaidi's office, he said.

Clark County District Court records show Eljwaidi and his companies are defendants in multiple lawsuits filed by investors and others -- some now listed as creditors in the bankruptcy filing.

Eljwaidi initially was sought for elder exploitation in December 2004, but five more possible victims came forward in 2009 after Secretary of State Ross Miller issued an arrest warrant for Eljwaidi.

The recent victims say they fell for investments with the real estate developer from 2005 through 2008.

As more victims continue to come forward in the investigation real estate scam, Miller said Eljwaidi could face new charges including securities fraud, sale of unregistered securities, obtaining money under false pretenses and racketeering.

Eljwaidi was arrested on July 29 after returning from London. He was booked into the Clark County Detention Center and posted bail at $2,030,000 million.

Records indicate Eljwaidi filed for Chapter 11 bankruptcy shortly before his arrest.

Court records show the company filed for bankruptcy in order to block foreclosure proceedings by creditor Vestin Mortgage involving land Babuski said it is developing at Russell Road and the 215 Beltway.

The bankruptcy filing listed $10 million to $50 million in both estimated assets and estimated liabilities.

Anyone who invested with Eljwaidi or his companies, Babuski LLC and JKG Development, or anyone who believes they may have been a victim, is asked to call the Secretary of State's Office in Las Vegas at (702) 486-2440, or (775) 688-1855 in Carson City.