Man gets prison for investor fraud
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A San Clemente man was sentenced Monday to 12 1/2 years in federal prison and ordered to pay $15 million in restitution for defrauding investors who were told their funds would be used to buy, fix up and resell distressed properties.
Assistant U.S. Atty. Andrew Stolper called the sentence for Edward R. Showalter, handed down by U.S. District Judge Andrew J. Guilford in Santa Ana, appropriate.
“This is a guy who stole money from everyday investors,” he said. “These are people who thought they had a second trust deed on a property and discovered there were eight other people who also had second trust deeds.”
Showalter had pleaded guilty, then asked to change the plea, contending he had found evidence to exonerate himself. The judge denied the motion and ordered him into custody.
Kenneth M. Miller of San Clemente, one of Showalter’s lawyers, said the defense believed Guilford wrongly denied the motion. Miller said the case would be appealed.
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