Man Sentenced for Investment Scam
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LOS ANGELES (AP) _ A man was sentenced to seven years in federal prison Tuesday for an investment scam that defrauded about 350 people out of nearly $8.7 million, authorities said.
Steven Hevell, 38, of Corona Del Mar, who pleaded guilty in February to three counts of mail fraud, was sentenced by U.S. District Judge Alicemarie H. Stotler.
Prosecutors said that from 1994 to 1998 Hevell falsely promised investors three high-tech companies _ MicroWest Industries, Advanced I.D. Technology, and Consolidated Imaging Centers Radiology Network _ would have substantial revenue from selling software that electronically transmitted radiological images.
He told investors they would receive annual interest of 14 to 17.5 percent.
In reality, the companies had no revenues and no functional software to sell, and new investor funds were used to pay interest owed to previous investors.
The judge also ordered Hevell to pay $8,699,724 in restitution.