A Tustin man was sentenced to 70 months in Federal Court for engaging in wire fraud. The man told investors that he could purchase Google stock at a discounted price because he allegedly had a special relationship with Morgan Stanley and Goldman Sachs. He assured the investors that their money was not at risk. Multiple emails were sent throughout the transactions with his investors which provided false information, including a forged Morgan Stanley email. Wire Fraud occurs when an individual uses the internet for the purpose of executing fraud. Fraud occurs when someone uses false representations to obtain money.
The sentence in this case was calculated by determining the amount of money lost by investors. Even though a substantial amount of money was returned to investors in this case, the court must still consider the entire amount of loss as “relevant conduct”. In this case, net losses after the return of some of the investor’s money was approximately $10 million. The court also considered the number of victims. In this case, there were between 10 and 50 which increased the sentence. A reduction of the sentence is given for “acceptance of responsibility”.
At sentencing the court must consider many factors including the nature and characteristics of the individual. An experienced criminal defense attorney will spend a significant amount of time with their client discussing any factors that may be compelling to the court and lead to a lesser sentence. There are often many mitigating factors in a case including restitution as was made in this case. Again, an attorney experienced in Federal Court will guide an individual through this process so that the necessary steps are taken to obtain the lowest sentenced possible.