Head of Investment Firm Gets 4 Years in $5-Million Fraud

After hearing the impassioned testimony of fraud victims, a Los Angeles Superior Court judge sentenced the former chairman of an investment company based in Universal City to four years in state prison for violating corporate securities laws.

Roy L. Comstock, 47, chairman of Comstock Financial Services, last month pleaded no contest to defrauding 500 investors throughout California and the Southwest of nearly $5 million. The former Sunday school teacher could have received a sentence of up to five years for the sale of unqualified securities.

Deputy Dist. Atty. Timothy J. Browne said the felonies occurred from August, 1984, to August, 1985. Comstock’s scheme promised clients a 15% to 30% return on investments in Treasury bills, but instead diverted the money to interests he controlled, Browne said.

Browne said Comstock used some of the money he collected to keep a business that he owned afloat and to maintain his own “extravagant” life style.

Twelve victims told their stories at a hearing before the sentencing. Some spoke angrily of losing their homes or turning over their life’s savings.

Comstock was an active member of the First Baptist Church of Van Nuys. The Rev. Jess Moody, pastor of the church, said he had lost $40,000.

Comstock made a remorseful speech at the sentencing hearing Wednesday before Judge Aurelio Munoz, saying he wished he could apologize to those he had defrauded.

“It’s rather cold comfort to people that have been put in this situation to hear him say, ‘Gee, I wish I could give you your money back,’ ” Browne said.