SANTA ANA, California – A former Newport Beach resident has been sentenced to 121 months in federal prison for running a Ponzi scheme through his Orange County-based company that defrauded hundreds of investors out nearly $50 million.
Joseph J. Lampariello, 62, who recently relocated to Huntington Station, New York, was sentenced Monday afternoon by United States District Judge David O. Carter.
In addition to the prison term of just over 10 years, Judge Carter ordered Lampariello to pay $39,961,859 in restitution.
Lampariello previously pleaded guilty to one felony count of wire fraud and one misdemeanor count of willfully failing to file a tax return.
Lampariello was the president and chief operating officer of Medical Capital Holdings, Inc., a medical receivables financing company that operated out of offices in Anaheim and Tustin.
Medical Capital administered several entities that raised money from investors who were told their money would be used to purchase account receivables from accredited medical providers, make secured loans and provide money for general operating expenses.
Over 11 months in 2008 and 2009, Lampariello misappropriated funds invested with one of the entities and used the money to make Ponzi payments to prior investors and to pay himself administrative fees.
Lampariello, through Medical Capital, defrauded over 700 investors of nearly $49 million.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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