Ex-Dealer in Precious Metals Convicted of Fraud
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IRVINE — A former Irvine precious-metals dealer has been convicted of eight counts of fraud for his role in the sale of $11.4 million in uninsured, worthless investments.
Alexander McCord, 47, of Laguna Hills was also convicted of falsifying a tax return.
McCord is the last of five officials of Capital Trust Inc. to be convicted. He faces as many as 38 years in prison and a fine of $2 million. His sentencing is scheduled for July 31.
Prosecutors said McCord was Capital’s leading salesman, generating $3.5 million in business between 1984 and 1987.
The verdict was rendered last week in U.S. District Court in Los Angeles.
The government indictment alleged that Capital sold investments in gold, silver and other precious metals, telling customers that the investments were insured and that their money would be placed in separate accounts. In fact, the investments were uninsured and worthless. And client funds were used to finance the lavish lifestyles of Capital’s executives, prosecutors said. Many of those who lost money were elderly and of limited means.
Three of McCord’s co-workers are scheduled to be sentenced in July as well; the fourth sentencing is set for September.
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