A former registered representative at a now-defunct Sherman Oaks brokerage and investment firm was sentenced Monday to 18 months in prison for a real estate investment scam that caused about five dozen investors to lose nearly $4 million.
Jonathan Greenfield, 50, of West Hills, who was a licensed securities representative at Morgan Peabody Inc., was also ordered to pay restitution of about $360,000 to victims of the fraud, according to the U.S. Attorney’s Office.
Greenfield pleaded guilty in December 2013 to two wire fraud counts, admitting that he provided his clients at Morgan Peabody with materially false information related to a real estate investment fund called the Sherwood Secured Investment Fund.
Greenfield also admitted that he omitted material information in connection with the fund, which was created by former Morgan Peabody CEO David Williams, who pleaded guilty in May and awaits sentencing, according to federal prosecutors.
Investors were told the Sherwood Secured Investment Fund offered a 9 percent annual return on investments made in “direct and indirect investments in real estate and real estate companies” and other secured investments. Williams admitted that he used the majority of investors’ money for personal expenses, according to pre-sentencing documents.
Greenfield was not charged with knowing that Williams would misappropriate the fund monies, but was charged with misrepresenting to his clients the risk and the purpose of the investment, prosecutors said.
— Wire reports