An Agoura Hills man who
used his business to defraud dozens of victims in a multi-million dollar
investment scheme was sentenced to seven years in federal prison this week, according
to federal authorities.
A federal judge also
ordered Dean P. Gross, 50, to pay restitution of approximately $15.4 million.
The investigation
indicated that 29 of the investors suffered $15.4 million in losses.
Gross, who was charged with operating the investment scheme between 2006 and 2009, pleaded guilty to one count of wire fraud on August 6, 2012.
While running the scheme, Gross
collected more than $35.8 million from approximately 39 investors, according to
federal authorities.
The investigation
indicated that 29 of the investors suffered $15.4 million in losses.
Gross operated the
scheme through his home business, which he called Bridon Entertainment.
When recruiting
investors, federal officials claim that Gross falsely represented to victims
that he was a veteran of the advertising industry. He made claims that he had
significant connections with his company Bridon Entertainment that allowed him
to purchase advertising time and space at discounted rates, federal officials
state.
Gross falsely advised
investors that he would then resell the discounted advertising to large,
well-known corporations at a substantial profit.
The investigation
revealed that Gross never used investors' money to buy or sell advertising and
that he did not have relationships with the well-known corporations he said
would buy the ads.
In classic Ponzi-style
fashion, investors were paid with money from new investors, and none of their
returns were generated from advertising sales.
The investigation also
revealed that Gross used millions of dollars in investor money to pay for
personal expenses, including the construction of a vacation house.