3 Guilty of Bilking Elderly Investors in $20-Million Scheme
- Share via
A federal jury in Los Angeles convicted three people Thursday of bilking elderly investors out of $20 million in a massive Ponzi scheme.
Mark D. Siegel, 51, of Westlake Village, John K. Judd Jr., 44, of Manhattan Beach and Betty Ann Rubin, 52, of Woodland Hills were found guilty of conspiracy, securities fraud, mail fraud and money laundering.
They were accused of enticing their victims to invest in bogus oil and gas developments, promising returns of 10% to 12% a year.
Prosecutors said they operated from 1991 to 1995 out of KS Resources, Weststar Exploration and Lazar Frederick & Co., Beverly Hills-based companies involved in the issuance of gas and oil well securities.
While KS Resources had some interests in gas and oil wells, prosecutors said it had nothing close to the revenues needed to fund the distributions promised to investors.
The jury found that the defendants diverted millions of dollars in new investments to make the interest payments and to enrich themselves.
Siegel, Judd and Rubin are scheduled to be sentenced Dec. 18 by U.S. District Judge Edward Rafeedie.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
