John Carl Willy, who admitted using investor funds to buy himself luxury cars and a home in Newport Coast, was sentenced Wednesday to 6 1/2 years in federal prison and ordered to pay $4.2 million in restitution, according to the U.S. attorney's office.
In a plea agreement before U.S. District Judge Cormac J. Carney, the 64-year-old defendant admitted falsely promising to put investors' funds in a European investment program endorsed by the Federal Reserve that would preserve the money in an insured London bank account while earning 10% every quarter.
Instead, prosecutors said, he squandered some it on himself and paid some back to investors as purported profits to allay their suspicions. Restitution must be made to 21 victims, authorities said.
-- Scott Reckard