SANTA ANA, Calif.—A 39-year-old man pleaded not guilty Dec. 20 in an alleged investment scheme that defrauded an elderly Laguna Beach man out of $1.4 million. Investigators alleged in court papers that Antonio Michele Velasco conspired with Thomas Martin Green in an “elaborate fraud scheme to entice [the victim] into an illusory investment of purchasing defaulted bail bonds.” The defendants “on numerous occasions … intentionally misled [the victim] into believing his consistent investments secured him collateral they obtained from defaulted bail bonds,” investigators alleged. “The victim’s frail, elderly and easily misled.” The victim lost about $1.4  million, investigators alleged. The two defendants were charged Oct. 27, and Velasco was arrested Saturday. Velasco is charged with 28 counts of grand theft, a count of theft from an elderly adult, 38 counts of money laundering, all felonies, with a sentencing enhancement for aggravated white-collar crime exceeding $500,000. He pleaded not guilty in his arraignment in the jail courtroom in Santa Ana and was ordered …