A Michigan man has been sentenced to 7-1/2 years in prison for a fraud scheme in which authorities say he stole nearly $1 million from people investing in his Indianapolis-based business.
A federal judge in Indianapolis also ordered 65-year-old Larry Westby of Vanderbilt, Michigan, to forfeit $985,000 he stole while running LMW Inc., a company purported to be selling respiratory therapy treatments to doctors. Westby pleaded guilty to charges of wire and securities fraud.
Federal prosecutors say Westby began telling LMW investors in 2010 that he was exploring a sale of the business at a substantial profit to a company that didn’t exist. Prosecutors say he used the money to pay off personal loans and credit cards, along with buying vehicles and a vintage basketball court for his home.