Daniel W. Heath was handed a 127 year and four month sentence today for his role in a Ponzi scheme that bilked elderly investors out of nearly $190 million.
He was the last of three con artists — one of whom was his father — to get jail time for running a scheme that raised more than $187 million from over 1,800 elderly investors in Southern California.
In January he was found guilty by a jury in the Superior Court of California in Riverside of 400 felony charges.
In 2004, the SEC filed a civil complaint against Mr. Heath and Denis O'Brien alleging they fraudulently induced senior investors to invest in “secured” notes that paid a guaranteed return through free lunch seminars.
Later that year, the Riverside County district attorney's office arrested and charged the men with committing securities fraud, elder abuse, grand theft, money laundering, tax fraud and conspiracy.
This year, Mr. O'Brien and Daniel Heath's father, John, were convicted of 70 and 52 felony counts, respectively, for their role in the scheme.
Mr. O'Brien was sentenced to 40 years and four months, and John Heath to 28 years and four months.
Each defendant received the maximum sentence and the three were ordered to pay a total of $117 million in restitution to the victims.
A call to Daniel Heath's lawyer was not immediately returned.
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