Robert Jennings, 58, a pastor from Perris, California and Arthur Simburg, 64, now of Portland Oregon (formerly of California), were sentenced today for their role in defrauding more than 500 investors out of some$28 million in a Ponzi-type scheme involving a front company they created, Tri Energy, Inc., an alleged mining concern. Jennings was sentenced to 12 years in prison and Simburg 9 years. They were ordered to pay restitution of $28 million.
In September the two were indicted on 33 fraud counts, along with a third conspirator, Henry Jones, 54, formerly of DelRay Beach, California. The scheme involved enticing investors into an coal mine venture and gold transaction between Israel and the UAE with promises of incredible returns (as much as 300 percent). The three were convicted last July after a 3 week jury trial. Jones was arrested in Hong Kong in July and is expected to be extradited to be sentenced in early 2009. Jennings was originally indicted in October 2007 on three counts of mail fraud, 10 counts of wire fraud, six counts of securities fraud and one count of contempt of court. Simberg was indicted on three counts of mail fraud, 10 counts of wire fraud, six counts of securities fraud and two counts of contempt of court.
Read the FBI release here and here.
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