Jay Belson, a suave high-end Los Angeles developer and real estate agent, has agreed to pay $3.9 million to settle allegations that he ripped off investors in a house-flipping scam.
Belson, who made guest appearances on Bravo’s “Million Dollar Listing Los Angeles,” raised $18 million from 23 investors over 5½ years with the promise they would cash in by flipping homes.
Belson promised investors he would only get paid out of profits from the flipping.
But Belson pocketed $2.5 million off the top to cover expenses and salaries, according to the Securities and Exchange Commission, headed by Chairman Jay Clayton.
In the settlement, Belson neither admitted nor denied the fraud allegations.
The scam blew up after one investor, who provided $9 million for three properties, grew suspicious and confronted Belson — who admitted the fraud in several texts.
