Securities: Businessman Sentenced to 10 Years for Investment Fraud

Michael P. Schaefer, a northeast Kansas businessman who admitted to defrauding investors in an Arizona housing project, has been sentenced to 10 years in jail. Schaefer will pay $1.1 million in restitution after he is released from jail. Prosecutors said that Schaefer took $10 million from 150 investors nationwide beginning in 2001 by promising to double or triple the money that they put in.

Businessman Sentenced to 10 Years for Investment Fraud

Schaefer pleaded guilty under an agreement with prosecutors in April 2006 to 19 counts of securities fraud and selling unregistered securities and 12 counts of selling securities when not registered as a securities broker. Schaefer also pleaded no contest to 10 counts of felony theft.