Arizona couple found guilty of scheming investors out of $5 million
Apr 9, 2022, 12:00 PM
PHOENIX — A couple in Tucson was found guilty on charges related to scheming investors of their software company out of approximately $5 million by a jury on Friday.
Michael, 73, and Betsy Feinberg, 80, were charged with one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud and five counts of securities fraud, according to a press release.
The couple ran the Catharon Software Corporation which promised to produce revolutionary software called VDelta, according to the release. They recruited friends and associates in Sedona, where the couple resided, to invest for almost 15 years, lying about the software’s completion, release date and capabilities.
The Feinbergs used investor money to pay themselves salaries and personal expenses including their home mortgage, according to the release.
The Federal Bureau of Investigation and the Arizona Corporation Commission were involved with the investigation of the case, while the Financial Crimes and Public Corruption Section of the U.S. Attorney’s Office, District of Arizona, Tucson, is the prosecution.
Sentencing is scheduled for June 15, 2022.