Defrauder gets 121 years, must pay $14.5M

A Tustin man was sentenced to more than 10 years in federal prison Wednesday for scamming more than 140 people, including a Newport Beach man, out of more than $20 million through a fraudulent investment business.

James Halstead, 63, was sentenced to 121 months in prison and ordered to pay $14.5 million in restitution to his victims.

Promising 25% to 35% quarterly returns, Halstead and Orange County attorney Jeanne Rowzee, 50, told victims they were investing in private entities and money market programs.

The victims were told the money was used to fund short-term loans that had never lost money.

Instead, the money was used in a Ponzi-like scheme to repay other investors and to fund their lavish lifestyles.

In one instance, Halstead lured in a Newport Beach man by offering investments into insurance premium funding.

Rowzee is scheduled to be sentenced in December, when he will face up to 15 years in prison.

— Joseph Serna