Redding Calif.—A Redding Real Estate Company has been charged with fraud by the Securities Exchange Commission.
The complaint was filed in federal court Thursday alleging that McKinley Mortgage in Redding raised 66 million dollars from 300 investors using an investment fund in Alaska.
McKinley Mortgage is operated by 55 year old Tobias Preston, his brother Charles Preston, and his son Caleb Preston.
Investors were promised predictable returns when in reality the company was insolvent.
The complaint says the Preston’s also misused millions of investor’s money on homes and private business investments.
The Preston’s agreed to repay 30 million dollars and hope to settle the case out of court.