DALLAS (CN) - An investment executive who defrauded old people of $50 million has been sentenced to 25 years in federal prison. Jeffrey Charles Bruteyn, 40, of Dallas, was convicted in April 2010 of nine counts of securities fraud.
U.S. District Judge Barbara M.G. Lynn sentenced Bruteyn on Monday.
Bruteyn is former managing director of the now-defunct Dallas-based AmeriFirst Funding Corp. and AmeriFirst Acceptance Corp.
Both companies have been under the control of a court-appointed receiver since the Securities and Exchange Commission brought an emergency action to halt the fraud in July 2007.
Prosecutors said Bruteyn orchestrated offerings of promissory notes called secured debt obligations, or SDOs, and raised more than $50 million from about 600 investors in Texas and Florida, many of whom were retired, and all of whom were looking for safe and secure investments.
Prosecutors said Bruteyn falsely promised that investors' money was insured by Lloyd's of London or Allianz, and guaranteed by a commercial bank.
Bruteyn also deceived investors about his qualifications and trustworthiness, by claiming to hold an MBA from the Wharton School at the University of Pennsylvania, and claiming to hold securities licenses, when in fact he had been barred from the brokerage business by the National Association of Securities Dealers.
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