HOUSTON (AP) — A Houston-area man has been sentenced to more than four years in federal prison for running an $11 million Ponzi scheme.
Prosecutors say 56-year-old Kenneth Alfred Scudder of The Woodlands could be required to forfeit a dozen properties.
A federal judge in Houston on Monday sentenced Scudder to 53 months behind bars in a scam going back to 2005.
Investigators say Scudder lured dozens of investors with a promise to use their money to buy houses, renovate the structures and then sell or rent the properties. Scudder promised investors at least 50 percent ownership in the sale of the houses or half of the rent.
Prosecutors say Scudder used some of the investment money to make mortgage payments on his primary home, buy a condominium in Galveston and purchase jewelry.