Head of Failed DFJ Italia May Have Fled U.S.
The bankruptcy trustee overseeing DFJ Italia fears that the former head of the defunct Irvine investment firm may have fled to Costa Rica, according to court papers.
Thomas J. Casey, the court-appointed interim trustee, has been unable to locate DFJ Italia founder Luigi DiFonzo since the company closed its doors last month, leaving 700 investors with losses of about $30 million.
A review of the firm’s accounting software revealed that the company spent more than $37 million over the last four years, including millions of dollars in personal expenses for DiFonzo and other DFJ executives.
Court papers show DiFonzo collected about $40,000 a week. Investor funds also were used to buy homes, cars, jewelry and other assets, according to the filing.
The trustee raided DiFonzo’s home Thursday night to seize personal belongings. DiFonzo was not at home and did not return, according to Steven Katzman, a lawyer for the trustee.
Meanwhile, the U.S. attorney in Los Angeles is suing to seize DiFonzo’s $4-million Laguna Niguel home. The Federal Bureau of Investigation and the U.S. Securities and Exchange Commission also are investigating. An attorney for DiFonzo did not return telephone calls.
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