Documents have shown that a lawsuit filed in California by families alleges they were wronged in what authorities say was a $100 million real estate Ponzi scheme.

The Sacramento Bee reported on Monday that a group called Attorneys Against Abuse of Elders filed the proposed class-action suit in Sacramento Superior Court against a company headed by investment guru Lawrence Leland "Lee" Loomis. The suit, now moved to federal court, alleges "an elegantly sophisticated scheme" duped families out of their savings.

The alleged scheme produced a multiyear investigation into mortgage fraud complete with drug and hate crime charges and financial troubles for investors across the country, Federal authorities have said.

One investor attracted into the Loomis Wealth Solutions plan attended a seminar held at a Holiday Inn before turning over $150,000.

The Bee further reported that the investment advisers repeatedly told them it was a "no brainer" paying them 12 percent interest on their investments, which would be guaranteed by the properties they bought to generate their cash.

Deborah Teja said, "He (Loomis) referred to himself as a Christian, God-fearing man."

According to David Teja, "Our credit is destroyed, and he just gets to walk the streets freely. We have a 13-year-old and an 11-year-old, and they just destroyed our college fund. That was one of the motivators, to be able to put some money into a college fund."

Lawyer of Loomis said that he has denied wrongdoing.

It was further reported by the newspaper that according to assistant U. S. Attorney Russell Carlberg, Loomis remains under investigation in an ongoing probe that has generated criminal charges against four of his lieutenants. (With Inputs from Agencies)