Baccala Spun Web of Deceit, Starting With Friends, Associates

Aldo Baccala was a charismatic investment manager whose friendly nature and seeming expertise in the stock market convinced many locals to invest with him, according to an article in Thursday’s Argus Courier.

On Tuesday, the 71-year-old Baccala was arrested and charged with 167 counts of making untrue statements about a security, felony grand theft and elder financial abuse. All in all, investigators say Baccala stole more than $20 million from Petaluma investors over two decades. 

“He started with a group that was close to him, friends and relatives,” Lou Neve, owner of Neve Brothers Wholesale Florists, told the Argus. “He built out from that.”

Baccala will be arraigned today at 1:30pm at Sonoma County Superior Court. If convicted, he faces up to 148 years in prison.

According to the indictment against Baccala, who operated out of an office at 204 G Street, the affable businessman engaged in a two-decade long Ponzi scheme, in which he used funds from new investors to pay returns to existing investors, while pocketing millions himself.

But all Ponzi schemes must eventually come to an end, as Baccala’s did in 2008 when he sent a letter to investors saying he could no longer guarantee payments. He was sued by 75 investors and the case settled for $21 million the following year.

The Sonoma County District Attorney’s office also began an investigation, joined by the Calfornia Attorney General because of the extent of the fraud.

But whether any of the investors will ever recoop even a portion of their money remains unclear. According to District Attorney Jill Ravich, if Baccala is convicted of the crimes charged, he will be ordered to pay back all of his victims.

Yet enforcement of restitution orders can be challenging, especially since Baccala’s assets were liquidated in 2009 following a settlement. 

Requests for a photo of Baccala with the Sonoma County Jail, where Baccala is being held on a $2 million bail, and the District Attorney's office, were denied, citing a countywide policy.

Did you know Aldo Baccala? Share your thoughts in the comments below.