A Corona del Mar man was sentenced Tuesday to seven years in federal
prison for running a large Ponzi scheme that defrauded about 350 victims
of nearly $8.7 million.
Steven Hevell, 38, was sentenced by U.S. District Judge Alicemarie H.
Stotler, who also ordered that Hevell pay about $8.6 million in
restitution.
The victims were defrauded by a high-technology investment scheme that
Hevell operated between 1994 and 1997. Hevell pleaded guilty in February
to three counts of mail fraud. A Ponzi scheme occurs when someone uses
money from new investors to pay interest owed to previous investors.
When he pleaded guilty, Hevell admitted that he induced victims to
invest in three high-technology companies by falsely promising that they
would have substantial revenues from selling software that electronically
transmitted radiological images.
The case was investigated by the FBI.
