A former Orange County businessman was sentenced to 10 years in federal prison for a Ponzi scheme that cost investors nearly $50 million.
Joseph J. Lampariello, 62, formerly of Newport Beach, was also ordered Monday to pay nearly $40 million in restitution, according to federal prosecutors.
Lampariello, who pleaded guilty to a felony count of wire fraud and a misdemeanor count of failing to file a tax return, was president and CEO of Medical Capital Holdings Inc., which had offices in Anaheim and Tustin, according to the U.S. Attorney’s Office.
Investors were told Lampariello would use their money to acquire account receivables from accredited medical providers, issue secured loans and pay for general operating expenses.
The executive instead used new investor money to pay prior investors and to reimburse himself for administrative fees from 2008 through 2009, prosecutors said. He defrauded about 700 investors of about $50 million, according to court documents.
— Wire reports