North Bay man charged in $20 million Ponzi scheme SONOMA COUNTY

A 71-year-old Sonoma County man was charged Tuesday with 167 felony counts of grand theft, securities fraud and elder abuse after investigators uncovered a $20 million Ponzi scheme, authorities said.

Joseph Baccala told elderly customers of his Petaluma company, Baccala Realty, that he would invest their money in real estate and secure returns of at least 12 percent, state Attorney General Kamala Harris said in a statement.

Instead, Baccala put the money in the stock market and used it to pay earlier investors, Harris said.

After losing $8 million in the stock market between 2003 and 2008, Baccala sought fresh cash by promising new investors a 27.5 percent return, Harris said. In November 2008, as the market plunged, Baccala told investors he could no longer make his promised monthly interest payments.

The Sonoma County district attorney began an investigation in January 2009 and was later joined by Harris' office.

Baccala is jailed in lieu of $2 million bail. He is scheduled to appear in court Thursday.