An Arizona couple has been sentenced to prison after they were convicted of bilking investors out of millions of dollars through false statements, InsuranceNewsNet reports.
A federal judge sentenced 73-year-old Michael Feinberg and 80-year-old Betsy Feinberg of Tucson to five years behind bars followed by three years of supervised release.
Prosecutors said the two engaged in a scheme to defraud investors for nearly 15 years through the company they operated together, Catharon Software Corporation. According to the charges, the Feinbergs claimed to have created a software that would generate huge returns for investors and philanthropists. They lured investors, including friends and associates, with false promises about when the software would be completed and what it was capable of. The Feinbergs sold unregistered shares of stock in their company with promises of high returns.
The couple instead used the investor money, about $5 million, to pay themselves salaries and cover a wide range of personal expenses, including their home mortgage.
The Feinbergs were found guilty of securities and wire fraud by a federal jury in April 2022. There will be a restitution hearing next month on the matter of the money owed to investors.
The attorneys at Lewitas Hyman have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. We bring a unique level of knowledge and experience when representing the rights of investors, including resolving cases through arbitration and litigation when necessary. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a no-cost evaluation of your matter.