SEC charges Calabasas donor in $17-million fraud case

A Los Angeles resident known for his charitable giving in Calabasas has been accused of stealing more than $17 million from investors.

The Securities and Exchange Commission charged Bruce Friedman, 59, and two of his companies with securities fraud earlier this month.

Friedman and his wife Wendy have been recognized in Calabasas for their generosity, and were both listed on the city's Wall of Honor in 2006. Friedman is president of the Friedman Charitable Foundation, which donated $1 million to help construct Brandon's Village. The universally accessible playground at Gates Canyon Park opened in 2006.

According to the SEC's complaint, Friedman and his Los Angeles investment firms—Diversified Lending Group and Applied Equities— raised at least $216 million from hundreds of investors nationwide since 2004. The investors, many of whom are senior citizens, were promised high returns through real estate investments.

But instead, Friedman diverted much of the money to other ventures, and took $17 million to "support his lavish lifestyle," according to document obtained from the SEC.

Friedman is said to have purchased cars, vacations, a $6.5million Malibu mansion—and jewelry and designer clothing for himself and an alleged girlfriend, Tina Placourakis, who is named in the complaint.

Friedman reportedly gave $275,000 to Placourakis and also spent $500,000 to help produce a film documentary.

This isn't Friedman's first brush with the law. In 1981, he was convicted of grand theft and sentenced to 40 months in prison for stealing $300,000 from office label company Avery International, according to court records.

Of the $17 million Friedman allegedly stole, at least $1.8 million went to the Friedman Charitable Foundation, the SEC said. The foundation has been a big supporter of Shane's Inspiration—a local nonprofit dedicated to building playgrounds for special needs children. The group gave Friedman a humanitarian award in 2007.

"Our involvement with the Friedmans has always been through their philanthropic contributions to Shane's. We have no further knowledge of any of their business dealings," Tiffany Harris, founder and CEO of Shane's Inspiration, said.

"They've always been generous with us. That's the side we know of them," Harris said.

Brandon's Village, which was created by Shane's Inspiration, is named after Calabasas resident Brandon Kaplan, a special-needs teenager who is also Friedman's nephew. Brandon's parents, Dina and Michael Kaplan, are Friedman's sister and brother-in-law. Dina Kaplan is also on the Friedman Charitable Foundation board.

The Friedmans and the Kaplans were both added to the Calabasas Wall of Honor in 2006.

Michael Hafken, Calabasas public information officer, said the city had no comment on the Friedman charges.

Both families are also members of Congregation Or Ami in Calabasas. Michael Kaplan is a past president of the congregation.

The foundation is also active with the Dodgers Dream Foundation and other projects.

Friedman recently pledged $5-million to help the Dodgers Dream Foundation build 42 youth baseball fields. He also promised $10 million to help build the Children's Museum of Los Angeles in Lakeview Terrace.

The Friedman Charitable Foundation offices are temporarily closed, according to an outgoing message on the office's main telephone line.