A federal judge in Denver sentenced George A. Weed of Benton, Ill., to 21 months in prison on Friday for his role in a high-yield investment scam that bilked more than 1,000 investors of $56 million.
Weed, convicted last year with three others, is to begin serving his sentence on July 21. U.S. District Judge Robert Blackburn also fined Weed $125,000 in retribution.
The group spent much of investors’ money on themselves, prosecutors said, buying the Redstone Castle, a private mansion near Carbondale, and eight NASCAR race cars.
Weed allegedly obtained bogus insurance policies covering the group’s investments and took $420,000 from investor accounts.
Norman Schmidt of Denver,the principal figure, was sentenced to 330 years in prison and ordered to pay $38.4 million. Charles Lewis of Littleton got 30 years, and Michael Smith has not yet been sentenced. Greg Griffin, The Denver Post
