Ore. swindler nets 20-year sentence

Story Published: Apr 16, 2008 at 8:35 AM PDT

By Associated Press

EUGENE, Ore. (AP) - Michael Marks Rich has been sentenced to 20 years in prison for conning more than 300 investors, many elderly.

The 71-year-old Bend man was convicted in December of running a Ponzi scheme that raised $18 million.

He promised returns of 10 percent from real estate, but he paid off investors mainly by raising cash from more investors.

In the end, prosecutors say, even his 94-year-old mother was ready to testify against him, saying he took $200,000 from her.

His wife, Phyllis, is serving a 51-month sentence.

A receiver for their company, Pac Equities, says investors have gotten back about a third of their money, and may get half.

Judge Michael Hogan handed down the sentence Tuesday.

(Copyright 2008 by The Associated Press. All Rights Reserved.)