ST. LOUIS (CN) - The president of Rate Search, an investment firm, was sentenced to 70 months in federal prison on fraud and tax charges. Scott Luster, 53, of Belleville, Ill. will also have to pay $5.19 million in restitution, most of to his victims, but $225,984 to the IRS.
Rate Search marketed, brokered and bought certificates of deposit for its customers. In February, Luster admitted defrauding Rate Search customers of millions of dollars by failing to buy CDs and diverting their money for his personal use.
Prosecutors say Luster also failed to report $807,000 he received through Rate Search for the taxable years 2002 through 2006.
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