SAN FRANCISCO (AP) -- A Northern California man has been sentenced to more than 5 years in prison for his role in a five-year long Ponzi scheme.
U.S. Attorney Melinda Haag announced that Douglas Hollingsworth was also ordered to pay $4.9 million in restitution during his sentencing in U.S. District Court in San Francisco on Wednesday.
The 64-year-old Hollingsworth of Santa Rosa pleaded guilty in February to wire fraud and money laundering as prosecutors argued he defrauded a dozen investors of at least $7 million.
Prosecutors say that Hollingsworth told investors he had developed a sophisticated computer system that allowed him to identify market trends and generate substantial profits from trading activity.
Hollingsworth admitted that he used the investors' money on personal expenses including jewelry and had promised payments to other investors through a Ponzi scheme.