A Sacramento-area man was sentenced to 12 years in federal prison Tuesday for running what prosecutors say was a massive Ponzi scheme that cost investors in six states millions of dollars.
U.S. District Judge John Mendez sentenced Lawrence Leland "Lee" Loomis, 60, of Granite Bay, in the scheme that collapsed during the 2008 Great Recession.
He could have faced 18 years in prison under a plea deal that also calls for him to repay less than $500,000 for defrauding nearly 200 investors in Arizona, California, Colorado, Florida, Illinois and Nevada.
Loomis Wealth Solutions took in more than $10 million by promising 12 percent annual returns, prosecutors said. Instead he used the money for expenses and to pay other investors, authorities said.
Sam Stanton's Bee coverage here.