A 56-year-old man admitted guilt and was immediately sentenced to 20 years in prison for his part in a Ponzi scheme that bilked more than 1,000 investors out of $52 million, prosecutors said Friday.
Lambert Vandertuig pleaded guilty to more than 80 felonies and acknowledged multiple sentencing enhancements for fraud in the plea bargain he struck with the state Attorney General’s Office on Thursday.
Orange County Superior Court Judge Thomas Goethals gave Vandertuig credit for 1,342 days behind bars.
Co-defendant Mark Sostak pleaded guilty to two felony counts of making a false statement or omission in connection with a purchase or sale. He is scheduled to be sentenced Feb. 20.
Co-defendants Scott Yard, Jonathan Carman, Soren Svendsen and Robert Waldman are scheduled to go on trial in mid-December.
The men worked for Irvine-based Carolina Development when they sold $52 million worth of stock that they pledged to spend on acquiring and developing luxury resorts, state prosecutors alleged when the six were charged in 2009.
Some land was acquired, but was left undeveloped, while the defendants spent about $24 million on their own medical bills, airplanes, posh meals, expensive cars, concert tickets and luxurious vacations, according to prosecutors.
The defendants claimed that famed golfer Arnold Palmer had partnered with them, according to the government.
Some of the victims were senior citizens who invested their retirement funds. To fend off suspicious investors, the defendants paid some clients returns on their investment with money collected from newer investors, according to prosecutors.
— City News Service