Wednesday, May 18, 2011

Conn. man who ran $100 million Ponzi scheme gets prison

HARTFORD, Conn. (AP) — A Connecticut man who tricked hundreds of investors into giving him more than $100 million on a promise of fat profits on diamonds and distressed properties has been sentenced to 10 years in prison.

Michael Goldberg was also ordered to undergo substance abuse and mental health evaluations. He must report to prison by July 18th.

The 40-year-old Goldberg pleaded guilty last year to wire fraud charges. Authorities recommended a 12- to 15-year sentence as well as restitution.

Goldberg's lawyers sought a lighter sentence, saying he turned himself in before authorities started investigating him and cooperated with investigators.

His victims lost $30 million in the scheme. Some said at a sentencing hearing earlier Monday that they lost homes, retirement savings and their children's college funds.

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