Mar 11, 2014 7:17 PM
Robert and Barbara Eberle, formerly of Chico, were sentenced to five years in prison today and have been ordered to pay more than $13.2 million in restitution.
The Eberle’s, were indicted August 22, 2007 for a fraud scheme that involved life settlement insurance contracts, and they pleaded guilty to securities fraud on July 20, 2012.
According to court documents, from 2001 until 2006, the Eberles made material misrepresentations and omissions when selling the life settlement insurance contracts to investors. For example, they told investors that the investments were safe, secure, and risk free and that investors were guaranteed high rates of return. As a result of their fraud, investors lost at least $13.2 million.
The case was investigated by the IRS-Criminal Investigations and the U.S. Postal Inspection service.
2 days ago