Santa Cruz man gets 21 months in prison for scamming investors
A Santa Cruz man convicted of federal wire fraud will spend 21 months in federal prison and pay $390,700 in restitution, according to court records.
Robert Rinehart was charged with eight counts of wire fraud in December 2012. According to the federal complaint against him, he stole $500,000 from investors who believed they were investing in his company, Argento Development Group. Prosecutors said Rinehart used the investors’ money to pay for his personal living expenses and falsely led the investors to believe he was spending their money on purchasing, improving and reselling foreclosed properties.
Under a plea agreement, Rinehart pleaded earlier this year to one of the counts of wire fraud in U.S. District Court in San Jose. All other charges were dropped in exchange for his plea.
Wednesday, a federal judge sentenced him to 21 months in federal prison followed by three years of supervised release, in addition to paying restitution. Rinehart, who is not in custody, must turn himself in to start serving his sentence on May 23.
