A Tucson couple has been sentenced to 5 years in prison for stealing nearly $5 million from investors through a scheme involving false promises of a revolutionary software.
Michael Feinberg, 73, and his wife Betsy Feinberg, 80, were sentenced on November 15, 2022, to 60 months in prison, followed by three years of supervised release. In April 2022, a jury found the Feinbergs guilty of multiple counts of securities and wire fraud.
The Feinbergs operated Catharon Software Corporation, where they claimed to have produced revolutionary software called VDelta that would generate enormous returns for investors and philanthropists. For almost 15 years, the Feinbergs lured investors with false promises about the software’s completion, release date, and capabilities.
Their victims included friends and associates recruited through various community organizations in Sedona, Arizona, where the Feinbergs resided at the time. In addition to paying themselves salaries, the Feinbergs used investor money for a wide variety of personal expenses, including their home mortgage.
A restitution hearing to address the approximately $5 million in victim losses is scheduled for December 13, 2022.
The Federal Bureau of Investigation conducted the investigation in this case with assistance from the Arizona Corporation Commission. The Financial Crimes and Public Corruption Section of the U.S. Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
Defendant: Michael Feinberg
Criminal Charges: Multiple counts of securities and wire fraud
City and State: Tucson, Arizona
Date: November 15, 2022
Sentence: 60 months in prison, followed by three years of supervised release
Dollar Amount: Approximately $5 million in victim losses
Related Federal Cases
- Michael Baker, Securities Fraud, Texas 2023 · Texas
- Patrick Green, Conspiracy to Commit Wire Fraud, Arizona 2023 · Texas
- Don W. Watson, Securities and Mail Fraud, Arizona 2006 · New York
- Maui Jim Employee, Mail and Wire Fraud, Scottsdale AZ, 2023 · California
- David Prescott, Wire Fraud, Boston MA, 2023 · Arizona
Key Facts
- State: Arizona
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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