- Associated Press - Monday, June 8, 2015

SANTA ANA, Calif. (AP) - A San Diego man was sentenced Monday to 10 years and one month in prison for running an investment scam that took more than $5 million from people who thought they were investing in “reverse life insurance” policies.

Daniel Christian Stanley Powell, 34, was sentenced Friday by U.S. District Judge Josephine L. Staton in Santa Ana. He was ordered to pay $4.4 million in restitution to 59 victims, according to the U.S. attorney’s office.

A jury convicted Powell in November of five counts each of mail and wire fraud, and three counts of obstruction of justice after a three-week trial.

Prosecutors say Powell founded the Los Angeles-based Christian Stanley Inc., telling investors he’d pay people for their life insurance policies and later collect the death benefits when they died or resell the policies to others. He trademarked the phrase “reverse life insurance” to describe what are more commonly known as life settlements and said he’d take the company public and file with the Securities and Exchange Commission.

He claimed the company already owned $1.9 billion in life insurance policies in a mutual fund, but in reality the company didn’t own any and had earned only $31,250.

Powell also told people that their money would be invested in gold mines, but that wasn’t true.

Powell apologized at his sentencing hearing.

“I did a lot of wrong to a lot of people,” Powell said. “What I am going through is what I deserve.”

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