Three men who ran an investment scam targeting elderly people received prison terms ranging from three years to 30 years.
James Litzinger, Gregory Chapman and Wallace Thomas were sentenced to state prison in Sacramento. The men ran a company that sold more than $11 million in unregistered securities. They claimed to be developing an internet banking system, but they never worked on any system. The principals spend money on fine dining, multiple cars, rent and cigars, according to prosecutors. The investors never received any returns.
Litzinger received 8 years in prison. Chapman got 30 years for grand theft and securities fraud.