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I-Team: Man Accused Of Having 2 Identities Sentenced

POSTED: 4:19 pm PDT May 29, 2009
UPDATED: 7:19 pm PDT May 29, 2009

The 10News I-Team tried many times to talk to Steven Pedroarena and he would never say a word.

He would not discuss his alleged role in tossing American retirees from their homes in Baja California by leveraging his Mexican citizenship to bring about the evictions.

Pedroarena never explained his Mexican birth certificate the I-Team found that showed he was born July 4, 1951, on a Tecate ranch -- and another certificate that showed he was born at Mercy Hospital in San Diego on the same day.

"He knows how to work the system," said Ralph Neiders.

Neiders said he was a Pedroarena victim, falling for an investment deal to plant exotic vegetables. He has since spent years trying to expose Pedroarena's alleged scams north and south of the border.

"He defrauds people; he's a con man," said Neiders.

When Pedroarena was apprehended it was not for the frauds he allegedly committed against individuals, but against the U.S. government.

Pedroarena has been on trial for bankruptcy fraud and income tax evasion.

"He uses his kids to hide assets. He used his grandmother to hide the assets," said Neiders.

Judge Jeff Miller, in passing down sentence on Pedroarena, described his crimes as sophisticated concealment. But in passing sentence, only Pedroarena's crimes against the government were considered.

"His mother was sick and he needed a loan," said alleged victim Richard Arroyo.

Arroyo claims Pedroarena fooled him out of $25,000, but he and other alleged victims will never see their money.

While some consider the 10-month sentence Pedroarena received as justice, it does not erase the pain for many who lost money because of him.

"I feel like a fool," said Arroyo. "I befriended him; I was taken advantage of."

Angeline Ortanez, a special agent for the Internal Revenue Service, said tough times does not mean anyone gets a free ride, not even well-to-do tax evaders like Pedroarena.

"If you intentionally hide your income, we're going to follow the money trail," said Ortanez.

Pedroarena has until July 8 to report to prison to serve his 10 months.

As part of a plea agreement with the U.S. Attorney's Office, he agreed to pay more than $514,000 in restitution, and also pay back $183,000 he owes for back taxes.
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Section: Holidays