June 8, 2004 – LAWFUEL -A Studio City man already serving a 46-month prison term for running a Ponzi scheme was sentenced today to another 18 months in federal prison for operating a scam in which he solicited investments in a company that falsely claimed it had developed a new telecommunications technology.
Cary S. Greene, 43, of Studio City, was sentenced this afternoon by United States District Judge Dean D. Pregerson, who additionally ordered the defendant to pay $30,000 in restitution to the victim that he defrauded.
Greene pleaded guilty in April to one count of securities fraud for making misrepresentations in connection with the sale of shares in the Glendale-based Broadband Concepts & Technologies, Inc., which he claimed had developed a means to compress data and send it via copper telephone wires.
Among other false statements, Greene told the victim that his investment would be used for general corporate purposes and that the investor could get his money back at any time. In fact, Greene took the money, used it for his own purposes and refused to return any money when the victim demanded its return.
Greene also failed to tell his victim that he had previously been charged by the Securities and Exchange Commission and the United States Attorney’s Office with securities fraud in relation to a Ponzi scheme that he and others operated under several different names, including Mustang Development Corporation. Mustang raised nearly $140 million by promising investors that their money would be used to develop oil and gas properties. However, little money was used to develop energy properties, and Greene and his co-schemers pocketed millions of dollars. In the criminal case related to Mustang, Greene pleaded guilty to securities fraud and tax evasion and was sentenced to 46 months in prison.
The sentence handed down today will run consecutive to the sentence in the case related to Mustang.
This case was investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation and IRS-Criminal Investigation. The Securities and Exchange Commission provided substantial assistance.