APHI Figure Is Sentenced
W. Carl Zimmerman, a key figure in a Del Mar investment syndication firm that was closed down by the U.S. Securities and Exchange Commission in 1984 after allegedly bilking clients out of $48 million, has been sentenced to 4 1/2 years in prison and ordered to pay $862,000 in restitution to investors.
Zimmerman, a 56-year-old Rancho Santa Fe resident, pleaded guilty in September to two counts of mail fraud and a third count of being an accessory after the fact to mail fraud in connection with his activities as chairman of American Principals Holdings Inc.
The SEC filed suit against Zimmerman and his associate Hugh Sackett, alleging fraud in the sale of unregistered securities and misuse of $10 million in investor funds.
Zimmerman, who was sentenced by U.S. District Judge John Rhoades, could have received a maximum jail term of 12 1/2 years in prison and restitution of $2 million.
Zimmerman oversaw 82 limited partnerships at APHI that were formed to finance ventures in real estate, energy generation, research and development and short-term financing. More than 2,300 investors put between $80 million and $90 million into APHI partnerships.
According to the federal indictment, Zimmerman failed to disclose to investors that money collected from some partnerships was commingled or mixed with funds from others, a violation of securities laws.
