Central Florida Men Sentenced To Prison For Ponzi Scheme
Follow CBSMIAMI.COM: Facebook | Twitter
FT LAUDERDALE (CBSMiami/AP) - A pair of Central Florida men who bilked investors out of almost $19 million have each been sentenced to 10 years in federal prison
A federal judge in Orlando also ordered Donald Babb and Ralph Ruth to pay $18.7 million in restitution.
Both pleaded guilty to conspiracy to commit wire fraud late last year.
Federal investigators say they falsely represented their businesses as financial institutions that were federally insured and advertised risk-free certificates of deposit for investment opportunities.
Authorities say neither man purchased CDs for their investors and instead used the money to pay earlier investors or to buy luxury items and real estate for themselves.
(TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
