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by Mike Caswell

U.S. federal prosecutors have begun proceedings to collect the $6-million home of Joseph Padilla, a California man who pleaded guilty to criminal charges arising from an OTC Markets scheme that he ran through a Canadian brokerage. (All figures are in U.S. dollars.) Prosecutors said that Mr. Padilla was behind the manipulation of Oncology Pharma Inc., an OTC Markets company that claimed to be developing cancer treatments. That scheme and others he ran inflicted losses of at least $42.5-million on investors, the government said.

The request for Mr. Padilla's home is contained in a motion that prosecutors filed on July 11, 2024, in federal court in Boston. The motion comes about nine months after the judge sentenced Mr. Padilla to 5-1/2 years in prison for the scheme. As part of the sentencing, the judge imposed a $3-million forfeiture order, which prosecutors are seeking to satisfy through the sale of his home.

They say little about the home, but real estate advertising describes it as an 8,255-square-foot house with four bedrooms and seven bathrooms. It is located in Carlsbad, Calif., in the Rancho la Costa neighbourhood. The one-acre property includes an outdoor pool, and was last sold in 2005 for $1,125,000. (Mr. Padilla previously described the home as a $6-million one, but prosecutors say it is worth less than the $3-million forfeiture judgment. The difference may arise from a mortgage or other charge against the title.)

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