A Ponzi scheme has landed one California-based broker behind bars
A 76-year-old former mortgage broker has been sentenced to three years in prison for his role in a Ponzi scheme.
Paul Sloane Davis was also sentenced by U.S. District Judge Charles Breyer. Davis was also ordered to pay $1.7 million in restitution.
According to a 2013 grand jury indictment, Davis and a partner, defrauded investors for funds they said would be used for bridge loans, through their company, DM Financial.
Prosecutors alleged the pair had convinced 21 investors to fork over $2.4 million over a period of three years, according to local publication, SFBay. Some of that money was used to repay old debts; the rest was put toward living a life of luxury.
“A number of his victims were also elderly, and he stole the money of those individuals, leaving them without the retirement that he was able to enjoy while he was stealing $2.4 million from them,” prosecutors wrote, according to SFBay.
Investors lost a total of $1.7 million.
Davis pleaded guilty to conspiracy to commit fraud, four counts of mail fraud, and nince counts of wire fraud in March.
Paul Sloane Davis was also sentenced by U.S. District Judge Charles Breyer. Davis was also ordered to pay $1.7 million in restitution.
According to a 2013 grand jury indictment, Davis and a partner, defrauded investors for funds they said would be used for bridge loans, through their company, DM Financial.
Prosecutors alleged the pair had convinced 21 investors to fork over $2.4 million over a period of three years, according to local publication, SFBay. Some of that money was used to repay old debts; the rest was put toward living a life of luxury.
“A number of his victims were also elderly, and he stole the money of those individuals, leaving them without the retirement that he was able to enjoy while he was stealing $2.4 million from them,” prosecutors wrote, according to SFBay.
Investors lost a total of $1.7 million.
Davis pleaded guilty to conspiracy to commit fraud, four counts of mail fraud, and nince counts of wire fraud in March.
