Tucson couple convicted of defrauding investors out of $5M
TUCSON, Ariz. (AP) — A Tucson couple who ran a software company have been convicted of defrauding investors out of about $5 million., according to federal authorities.
Prosecutors said 73-year-old Michael Feinberg and his 80-year-old wife Betsy Feinberg were convicted by jurors Friday after a trail in U.S. District Court in Tucson.
The two are scheduled to be sentenced on June 15.
According to evidence presented at trial, the Feinbergs’ company promised investors and philanthropists enormous returns.
Their self-proclaimed revolutionary software also was supposed to give people the ability to create programs without having to be a programmer.
Prosecutors said the couple made false promises about the software’s completion date, release date and capabilities for 15 years.
They said the Feinbergs used investor money to pay themselves salaries and pay their personal expenses including their mortgage on a Sedona home.
The couple was charged with one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud and five counts of securities fraud.