NJ man sentenced in $1.8 million investment scam

AP News
Posted: Nov 23, 2009 9:38 AM

A Southern New Jersey securities broker who operated a $1.8 million investment fraud scheme has been sentenced to more than eight years in prison.

Jeffrey Southard of Pittsgrove also must make full restitution and serve three years of supervised release after being released. He had pleaded guilty in June to charges of mail fraud and signing a false tax return.

The 44-year-old Southard _ who was sentenced Friday to a 97-month term in federal prison _ admitted that he induced about 14 clients to purchase bonds that did not actually exist and provided false monthly statements to the investors.

Prosecutors say he used the proceeds for mortgage and car payments, private schooling for his five children, vacations and other personal expenses.