Tucson couple sentenced to 5 years in prison for stealing $5 million from investors
Nov 23, 2022, 4:15 AM
PHOENIX — An Arizona couple was sentenced to 60 months in prison followed by three years of supervised release last week after being found guilty on charges related to scheming investors of their software company in April, the U.S. Attorney’s Office in Arizona announced.
Michael, 73, and Betsy Feinberg, 80, of Tucson 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. The pair stole approximately $5 million.
A restitution hearing to address victim losses is set for Dec. 13, according to a press release.
The Feinbergs ran the Catharon Software Corporation, which claimed to produce revolutionary software called VDelta.
They enticed friends and associates in Sedona, where the couple resided, to invest with false promises for 15 years, according to the release.
The Feinbergs used that money to pay themselves and for personal expenses including their home mortgage.
The Federal Bureau of Investigation and the Arizona Corporation Commission investigated the case, while the Financial Crimes and Public Corruption Section of the U.S. Attorney’s Office, District of Arizona, Tucson, led the prosecution.