Former Broker at San Fernando Valley Brokerage Firm Sentenced to 18 Months in Federal Prison for Defrauding Investors
LOS ANGELES—A former registered representative at a now-defunct Sherman Oaks brokerage and investment firm was sentenced today to 18 months in federal prison on wire fraud charges associated with a real estate investment scam that resulted in about five dozen investors losing nearly $4 million.
Jonathan Greenfield, 50, of West Hills, who was a licensed securities representative at Morgan Peabody, Inc., was sentenced by United States District Judge Dale S. Fischer.
Greenfield pleaded in December 2013 to two wire fraud counts, admitting that he provided his clients at Morgan Peabody with materially false information related to a real estate investment fund called the Sherwood Secured Investment Fund, LLC. Greenfield also admitted the he omitted material information in connection with the fund.
The fund was created by former Morgan Peabody Chief Executive Officer David Williams, who pleaded guilty in May and is pending sentencing (see: http://go.usa.gov/3SQQw). The Sherwood Secured Investment Fund offered a 9 percent annual return on investments made in “direct and indirect investments in real estate and real estate companies” and other secured investments, but Williams admitted that he used the majority of investor money from the Sherwood Fund to pay for personal expenses. Greenfield was not charged with knowing that Williams would misappropriate the fund monies, but was charged with misrepresenting to his clients the risk and the purpose of the investment.
In addition to the prison term, Greenfield was ordered to pay restitution of $359,497 to victims of the fraud.
The investigation into Williams’ scheme was conducted by special agents with the Federal Bureau of Investigation and IRS—Criminal Investigation.