Michael K. Wallens Sr. of Spring was sentenced to four years and five months in federal prison for his role in raising $17 million from investors who thought they were putting their money into safe and secure promissory notes.
The sentence, issued Feb. 24 in U.S. District Court in Dallas, also requires Wallens to serve three years of supervised release after his prison term and pay $13 million in restitution to his victims.
He had pleaded guilty to one count of securities fraud. Wallens and his son, Michael K. Wallens Jr., sold the fraudulent notes to approximately 180 investors through their company, W Financial Group (WFG) of Dallas. They falsely told investors their money would be held in cash and government and corporate bonds.
The State Securities Board and federal authorities investigated the WFG case, which was prosecuted by the U.S. Attorney's Office in Dallas.