Maleksalehi free on bail; enters a plea of not guilty
By Kara Chalmers
Saratogan Nemat Maleksalehi has until April 10 to come up with property worth $1 million for bail.
Released on a $1 million secured bond, Maleksalehi, also known as Matt Madison or Matt Malek, pleaded not guilty on March 2 to federal charges of mail and wire fraud, and money laundering.
Maleksalehi, 57, is a real estate tycoon and parent of young Saratoga athletes. He offered in January to build, fund and manage an indoor gym for Saratoga.
He owns and manages real estate in four states including California through his Los Altos-based business, the Housing Network. He lives in a hilltop home here.
In February Maleksalehi admitted to state charges of welfare fraud and felony grand theft. According to the Santa Clara County District Attorney's office, Maleksalehi stole $212,000 in housing subsidies meant for the county's poor.
But, while the federal charges of mail and wire fraud and money laundering also have to do with amassing housing subsidies illegally, the amount is much larger, approximately $1.3 million.
Through a scheme that lasted from 1991 to 1996, according to the U.S. Attorney's office for the Northern District of California, Maleksalehi defrauded the federal Department of Housing and Urban Development of money and property. Maleksalehi owns and manages the Pittsburg Plaza, a 126-unit multifamily housing project in Pittsburg, Calif. HUD subsidized the project with Section 8 rental subsidies for low-income families. The indictment states that Maleksalehi used the monthly Section 8 payments, as well as funds for major maintenance on the project, for personal expenses unrelated to the Plaza.
Maleksalehi could be sentenced to five years in federal prison for each of the 11 counts of mail or wire fraud, plus be required to pay a $250,000 fine and restitution. Each of the three money laundering charges carries up to 20 years in federal prison plus a $500,000 fine, or double the amount of money laundered, whichever is greater. Maleksalehi is next scheduled to appear in U.S. District Court in San Jose on March 14.
Incidentally, Maleksalehi's brother, Shokrolah Maleksalehi, 47, of San Jose was indicted on March 7 by a federal grand jury for bankruptcy fraud. Shokrolah Maleksalehi is scheduled to make his initial appearance in federal court on March 9.
Nemat Maleksalehi is set to appear in state superior court for sentencing on his state charges on March 23. Maleksalehi faces up to three years in state prison for these crimes.
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Saratoga, California Since 1955
