THOUSAND OAKS : Man Sentenced in Fake-Firm Fraud

A Las Vegas businessman who pleaded guilty to securities and tax fraud in connection with a fake Thousand Oaks company has been sentenced to 30 months in prison and ordered to pay a $20,000 fine.

In U.S. District Court in Los Angeles Monday, Robert Victor, 53, admitted his role in a scheme to boost the price of over-the-counter shares in Magna Technologies Inc. in 1985.

Using a combination of false press releases and made-up business transactions, the company drove the price of its stock from 50 cents to $9.50 in less than six months, the prosecutor said.

The company then sold some of its shares before the price of the stock collapsed to nothing, Assistant U.S. Atty. John Walsh said.

“About $3 million to $4 million was lost by investors and brokerages houses when the price fell,” Walsh said.

Among those duped by Magna was Ventura real estate investor Hoi Nguyen, who Walsh said lost more than $200,000 through loans to the company.

Three other men have been indicted in the scam, but the mastermind of Magna, Jacob Rubenstein, is still at large, Walsh said.

The fake company, which occupied a one-room office at 75 Long Court, promised several household products including instant coffee in a cup, Walsh said.