Jury Convicts 2 of Metals Scam Run in Newport : * Crime: The former owner of Investment Metals International and his stepson are convicted of bilking gold and silver investors out of $10 million.

A federal jury in Los Angeles on Thursday convicted two men of running a Newport Beach precious-metals company that bilked investors out of $10 million.

Harold Lazerman, 58, formerly of Newport Beach, was found guilty of 29 counts of mail fraud and two counts of tax evasion. His stepson, Danny Facella, 32, of Palm Desert, was convicted of 13 counts of mail fraud and two counts of failing to file tax returns.

Lazerman owned the company, Investment Metals International Inc., from 1980 to 1987; Facella was its regional sales manager.

Between 1983 and 1986, the company induced people to invest in more than $18 million in gold and silver bars, which they were told would be stored for them at the company’s offices in Newport Beach.

But the company, as it turned out, owned no precious metals. However, Lazerman traded heavily in metals for his own benefit. Prosecutors said that of the $18 million invested, $10 million was lost.

Investment Metals’ sales staff solicited investors from around the country via telephone and mail and falsely told them that the company held a seat on the Chicago Board of Trade.

Lazerman faces up to 155 years in prison and $229,000 in fines. Facella could get up to 67 years in jail and $63,000 in fines. They are due to be sentenced on Aug. 26 before U.S. District Judge Richard A. Gadbois Jr.