Paul Sloane Davis, 76, was sentenced by U.S. District Judge Charles Breyer to three years in prison for his participation in a $2.4 millon Ponzi scheme. Judge Breyer also ordered him to pay $1.7 million in restitution to Davis’ victims.
Davis and a partner, Diane Cobb, 58, formerly ran a financial services company in Novato called DM Financial. The 2013 grand jury indictment accused them of soliciting investment money to be used for short-term bridge loans. Prosecutors alleged that the monies the pair received was used to either pay back previous investors or to support a lifestyle of expensive restaurant meals and travels. The victims who unwittingly supported the Ponzi scheme, which ran from 2009 to 2013, did so with their retirement funds or childrens’ college funds.
Diane Cobb previously pleaded guilty to the same charges as Paul Davis and awaits her sentence in January 2016.
Read the original article in Marinscope Community Newspapers.