SoCal Woman Gets 5 Years For Investment Fraud
LOS ANGELES (AP) — A Southern California woman has been sentenced to five years in federal prison for an investment fraud that cost victims $6.1 million.
Clelia Flores, 43, was sentenced Monday in Los Angeles and was ordered to repay 169 victims.
Prosecutors say her company, Maximum Return Investments, promised returns of 25 percent on real estate, gold and other investments.
Victims were told their money was safely banked and only used as collateral.
Prosecutors say that in reality, Flores made a few bad investments bought herself a luxury home in El Segundo and used some investors' money to repay others in a classic Ponzi scheme.
Flores pleaded guilty in May to wire fraud and other crimes.
Federal regulators also have fined her company for violating securities laws.
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