vbsd0292_ntscSAN DIEGO—A managing director of an investment company was sentenced by a judge today to 30 months in prison for investment fraud and embezzlement.

U.S. District Court Judge Roger Benitez also ordered Walter Andrew Mills, 45, of San Diego County to pay $844,800 in restitution.

Mills pleaded guilty to wire fraud on June 6. According to court documents and his admissions, Mills fraudulently convinced a victim to invest $419,800 in Mills’ company, Cabrillo Investment Group, LLC, by concealing the fact that the victim’s previous investments in HessGen, Inc. had been misappropriated. Upon receiving the investment, Mills diverted a significant portion of the money to his own personal use.

As part of a larger scheme, between November 5, 2010, and March 26, 2012, Mills convinced additional victims to invest $425,000 in HessGen and another company, Smart Gaming Software, knowing that a significant portion of the money would not be used for the purposes represented. Mills similarly diverted a significant portion of those funds to his own personal use.

“The defendant cheated investors out of hundreds of thousands of dollars and now he is being held to account,” said U.S. Attorney Laura Duffy. “The victims placed their faith and financial futures in the hands of a man who thought only of himself.”

FBI Special Agent in Charge Eric Birnbaum commented, “Mr. Mills violated the trust of the people who had faith in him and the ones he was supposed to serve. The FBI is committed to holding those accountable who abuse their position of trust for the sole purpose of unlawfully enriching themselves.”

Maximum penalty is 20 years  imprisonment and $250,000 fine.