David Boyer Prince, a former California attorney who ran two fraudulent investment funds, on Feb. 8 was sentenced to seven years in federal prison. He had been convicted on five counts of wire fraud in U.S. District Court in San Francisco.
The government's sentencing memorandum details how Prince promised high "guaranteed"returns, but used investors' money for his persona expenses while running a Ponzi scheme that cost investors $1.1 million.
In 2006 the Texas Securities Commissioner entered a Cease and Desist Order that barred Prince from selling unregistered securities and misleading investors. Prince's violation of that order was part of the federal case against him.